EOH HOLDINGS LIMITED - Financial Impact of the Sell-Back and Unwinding of the Acquisition of the GCT Group And Withdrawal of Cautionary

Financial Impact of the Sell-Back and Unwinding of the Acquisition of the GCT Group And Withdrawal of Cautionary

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

FINANCIAL IMPACT OF THE FINALISATION OF THE SELL-BACK AND UNWINDING OF THE
ACQUISITION OF THE GCT GROUP OF COMPANIES AND WITHDRAWAL OF CAUTIONARY

On Monday, 11 December 2017, EOH announced the finalisation of the agreement to sell back and hence
unwind its acquisition of Grid Control Technologies Proprietary Limited, Forensic Data Analysts Proprietary
Limited and Investigative Software Solutions Proprietary Limited (‘GCT Group’).

The unwinding involves selling back the companies in the GCT Group to the former shareholders (‘BVI’) for
an amount of R365 million, which is equal to the cash originally paid and the value-adjusted EOH shares
originally transferred.

The unwinding is expected to result in a non-cash, once-off reduction in consolidated earnings of
R385 million for the financial year ending 31 July 2018. This reduction in earnings is made up of R169 million
in previously recognised profits in the financial years 2016, 2017 and 2018 being unwound, and R216 million
in EOH share-related effects arising as a result of the reversal of anticipated share transfers as well as the
reduction in the value of the shares returned due to share price movements.

No impact on headline earnings is expected.

Further details of this transaction and its effects will be disclosed as a non-adjusting event after the reporting
period in EOH’s Annual Integrated Report for the financial year ended 31 July 2017. The report will be
released by the end of January 2018. The financial information on which this announcement is based has
not yet been reported on by EOH’s auditors.


WITHDRAWAL OF THE CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the cautionary announcement released on SENS on 11 December 2017
wherein shareholders were advised to trade with caution until the financial impact of the sell-back transaction
is announced. The cautionary announcement is hereby withdrawn.


Johannesburg
3 January 2018

Sponsor
Merchantec Capital

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