Services News South Africa

Seacom buys EOH's Network Solutions, Hymax for R145m

EOH has announced that it has concluded an agreement to divest its Network Solutions (EOHNS) and Hymax businesses to Seacom for a consideration of R144.9m. The proceeds from the sale, net of costs, will primarily be applied to reduce EOH debt further
Seacom buys EOH's Network Solutions, Hymax for R145m

Stephen van Coller, EOH group chief executive officer, said: “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 the world-class infrastructure and maintain their service excellence.

“I believe that Seacom 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 Seacomconnectivity expertise.”

“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,” said Oliver Fortuin, group CEO at Seacom.

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