EOH has disposed of its remaining 30% stake in Construction Computer Software (CCS) and the “entirety of its ownership” in LSD Information Technology Proprietary Limited, the company announced.
It said the move will strengthen the group’s balance sheet in line with EOH’s strategic intent. EOH stated the transactions were valued at R144 million and R96 million, respectively.
The 30% stake in CCS will be sold to RIB Limited, which purchased the preceding 70% from EOH subsidiary EOH Mthombo in July 2019.
In terms of LSD, EOH, through EOH Mthombo, acquired LSD in December 2017.
“LSD specialises in open source technologies and has supported the digital transformation journey of EOH customers,” said EOH.
“On 17 April 2020, EOH Mthombo entered into a settlement agreement with the initial sellers in terms of which EOH Mthombo has agreed to transfer all of its shares in LSD to the initial sellers as full and final settlement of EOH’s outstanding obligations, estimated at R96 million.”
“The settlement agreement amicably cancels the initial acquisition agreement and relieves EOH of its obligations in this regard.”
EOH said it and LSD are “committed to ensuring that all customers of EOH and LSD continue to receive the various services offered by LSD”.
“As such, a service-level agreement between the two parties is being finalised.”
EOH CEO Stephen van Coller said that with regard to the CCS transaction, “both parties believe that given the significant growing uncertainty around global economic conditions due to COVID-19, the transaction is the most prudent approach in the circumstances”.
“I’d like to express my gratitude to both LSD and CCS and wish them the very best in their future endeavours,” said van Coller.