JSE-listed EOH announced that it has concluded an agreement to divest of its Network Solutions (EOH-NS) and Hymax businesses to SEACOM, which owns Africa’s largest network of ICT infrastructure, for a consideration of R144.9 million.
The proceeds from the sale, net of costs, will primarily be applied to reduce EOH 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.
EOH-NS and Hymax are also strategic and essential partners to a variety of enterprise clients covering multiple verticals across the private and public sector.
“EOH has embarked on a targeted disposals strategy which includes assets that are capital intensive. In support of this and due to EOH’s current capital constraints, relative to the Mobile Network Operators (MNOs), and as the Group prioritises creating a fit-for-purpose capital structure, we have looked to ensure that EOH-NS and Hymax can continue investing in world-class infrastructure and maintain their service excellence,” said Stephen van Coller, EOH CEO.
“I believe that SEACOM, as a leading ICT and internet connectivity supplier for African enterprises, will provide a compelling opportunity for value unlock for EOH-NS and Hymax both for existing and future clients and the transferring employees. The embedded relationships that exist between our customers and other EOH business units will remain as is and the EOH Infrastructure Services business is positioned to benefit from the transaction as we leverage the SEACOM connectivity expertise.”
Oliver Fortuin, Group CEO at SEACOM said the acquisition of EOH-NS and Hymax forms part of SEACOM’s ambitious growth strategy that will transform the business into a converged telecommunications provider across Africa.
“By expanding our on-net capabilities and reach with this acquisition and the acquisition of Hirani Telecom and Africell Uganda’s infrastructure, SEACOM aims to provide customers with comprehensive enterprise-grade ICT solutions and quality connectivity.”
EOH sees its continuation of business with SEACOM as part of its shared future success and looks forward to unlocking opportunities for collaboration in the EOH-NS and Hymax businesses.
