EOH shares tank as talks with Microsoft fail to yield results

JOHANNESBURG – JSE-listed technology services company EOH Holdings crashed a further 16.37 percent on the bourse yesterday following news of its unsuccessful talks with tech giant Microsoft.

The company’s shares fell for a sixth consecutive day to close yesterday at R14.61 following a run on its shares after it announced two weeks ago that Microsoft had notified its subsidiary, EOH Mthombo that it was planning to terminate the company’s Channel Partner Network Agreement within 30 days.

In a SENS announcement on Tuesday, EOH said that the Microsoft investigation forms part of EOH’s larger internally-initiated investigation into all public sector contracts over the last five years, with the support of ENSafrica. 

“This process involves obtaining information from whistleblowers and the corroboration of internal facts as part of a thorough and detailed forensic investigation of these public sector contracts,” it said.

It allowed that the media may also have access to these contracts and evidence from whistleblowers.

“EOH cannot respond each time the media publishes information on the back of their information, but shareholders will be provided with responses to relevant media coverage and advised of developments as appropriate, subject to legal advice,” the group said.

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