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EOH HOLDINGS LIMITED - EOH Update and Cautionary Announcement

Release Date: 11/12/2017 08:31
Code(s): EOH     PDF:  
Wrap Text
EOH Update and Cautionary Announcement

EOH HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/014669/06)
Share code: EOH ISIN: ZAE000071072
(“EOH”)

EOH UPDATE AND CAUTIONARY ANNOUNCEMENT

On Thursday, 7 December 2017, extraordinary volumes of EOH shares were traded. EOH has established
that both the high volumes as well as the substantial drop in the share price was triggered by the forced sale
of shares by financial institutions against equity financed transactions to various individual shareholders,
including two EOH directors. EOH confirms that the directors affected did not voluntarily sell their shares, but
rather that the sale was caused by margin calls against these equity financed transactions (a separate SENS
announcement will be issued in this regard).

Separately, as published previously, EOH has finalised the sell-back agreement in order to unwind its
acquisition of Grid Control Technologies Proprietary Limited, Forensic Data Analysts Proprietary Limited and
Investigative Software Solutions Proprietary Limited, which it acquired in November 2015.

EOH had been in discussions with the previous shareholders of the above-mentioned companies for some
time about unwinding the transaction. These discussions were initiated as a result of a significant
underachievement against performance warrantees. Recent media allegations relating to Mr Keith Keating
caused EOH to expedite the unwinding and conclusion of the sell-back agreement.

In view of the allegations and in the interest of good governance, EOH has appointed Edward Nathan
Sonnenbergs Incorporated (“ENSafrica”) to conduct a full fact-finding review of the commercial activities of
the three companies mentioned above. In keeping with the Group’s zero tolerance commitment, it will act
against any identified wrongdoing or misconduct involving any individual or entity.

To further strengthen EOH’s corporate governance, material public sector engagements and contracts will
be subject to independent oversight by ENSafrica.

This is in addition to the internal compliance measures adopted by the board’s Audit Committee in July this
year, which includes a review of EOH’s governance framework and all material public sector contracts, which
is well underway.

Shareholders in EOH and other potential investors are advised to exercise caution when dealing in the
securities of EOH until the financial impact of the sell-back transaction is announced.

Johannesburg
11 December 2017

Sponsor
Merchantec Capital

Date: 11/12/2017 08:31:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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