EOH has announced that it concluded agreements to divest from its Network Solutions business and sell the entire issued share capital of Hymax to Seacom for R144.9 million.
The company said the transaction’s proceeds would mainly be applied to reduce its debt further.
“EOH-NS and Hymax have vast experience in the delivery of wholesale and managed service solutions for the networking and voice segments of the telecommunications industry,” the company said in a notice to shareholders.
Explaining its decision to sell the two stakes, EOH said that it embarked on a strategy of targeted disposals over the past two years, which includes capital-intensive assets.
“EOH has looked to ensure that EOH-NS and Hymax can continue investing in world-class infrastructure and maintain their service excellence,” it stated.
The transaction comprises two inter-conditional agreements: the sale of the EOH-NS business as a going concern to Hymax and the sale of the entire issued share capital of Hymax to Seacom.
It will take effect on the first day of the month immediately following the month within which the fulfilment or waiver of the suspensive conditions regarding the sale of shares is met.
This process is estimated to take three to five calendar months, with conditions needing to be met by 31 August 2022.
These include requisite board and shareholder approval and unconditional approval from competition authorities.