EOH Holdings Ltd., a South African information, communications and technology firm, is raising its black-owned shareholding through a ZAR 1 billion ($76 million) empowerment deal with Lebashe Financial Services.
Lebashe will provide EOH with an equity injection as it buys shares at a 10 per cent discount, Johannesburg-based EOH said in a statement Monday.
The transaction will make EOH “one of the largest, majority black-owned technology companies in Africa,” it said.
The transaction comes as Stephen Van Coller, a senior executive at pan-African telecommunications company MTN Group Ltd. and the former head of Absa Group Ltd.’s investment-banking division, will take over the helm at EOH. The technology company is taking steps to improve its governance and turn around its performance after the stock fell to the lowest since November 2011. This includes splitting into two separate business units that will be overseen by a holding company from August.
Lebashe holds a stake in Capitec Bank Holdings Ltd., South Africa’s fastest-growing lender. Companies have been selling to black investors as part of South Africa’s drive to reverse years of discrimination caused by white-minority rule, which ended in 1994.