EOH raises R600m to help settle debt

As previously announced, EOH’s long-term strategic partner, Lebashe Investment Group, has subscribed for an additional R100m specific issue of shares, thereby increasing the successful capital raise to a total of R600m.

Proceeds from the capital raise will be used to settle the majority of EOH’s bridge facility. This will allow for a debt restructuring at lower interest rates and provide the company with the ability to make significant investments in the growth of the business.

Commenting on the results of the rights offer, Stephen van Coller, group chief executive officer of EOH said:

“Today EOH celebrates a watershed moment, a long and difficult chapter has finally closed. We are hugely encouraged that, in this difficult environment, our rights issue has been oversubscribed. This incredible vote of confidence from our shareholders in the EOH of tomorrow, and the significant strategic progress the Board and management have made, is proof that EOH is investable again.

“Over 91% of shareholders followed their rights, with requests for additional allocations of R220m. This along with the R350m underwriting commitments means a total demand of over 200% for the offer. I can’t adequately express how thankful I am to our staff, clients, lenders and suppliers for their unwavering support and patience during some uncertain times.

This incredibly successful rights issue in a very tough economic climate welcomes a new era for EOH, with our now optimised capital structure giving us the ability to invest in our growth, knowing that our strategy for EOH 2.0 has the wholehearted backing of all our shareholders and lenders.”