EOH Holdings has announced that it has been given 30 days notice on Microsoft’s plan to terminate its Channel Partner Agreement with group subsidiary EOH Mthombo.
This means that EOH Mthombo will cease to be a direct Microsoft licence reseller, which is expected to cost EOH R10 million in the current financial year alone.
“At this stage, EOH has not been provided with any reason for the notice of termination,” said EOH in a SENS statement.
“However, Microsoft remains an important part of EOH’s network of the more than 50 technology partners within the EOH Group and resolution of this matter is a priority.”
Group CEO Stephen van Coller is in discussions with Microsoft to resolve the issue as soon as possible, as EOH seeks to limit the effects the move could have on the company’s business operations.
EOH said that it has also implemented plans that will seek to minimise any disruptions to their customers.
At the time of writing, the EOH share price had gone down by nearly 28% on Tuesday – following news of the Microsoft agreement being terminated.