EOH’s 92% increase operating profit endorses Investment case for upcoming rights issue.
Following EOH’s recent robust full year results announcement, the group unveiled that it is now seeking approval from its shareholders for R600m equity raise to reduce its debt financing costs.
In a show of confidence Lebashe Investment Group, EOH’s strategic partner since 2018 has signed irrevocable undertakings to follow its rights on the shares it currently owns, which represents 13.06% of the issued share capital, as well as invest a further R100m through a specific share issue. The combined investment is a clear vote of confidence in EOH’s future and strategy.
Rightsizing the capital structure will allow EOH to pursue a growth strategy, immediately improve earnings and lead to value unlock for shareholders.
I speak to EOH Group CEO Stephen van Coller and Group CFO Megan Pydigadu about the EOH of tomorrow, the investment case ahead of the forthcoming rights issue, and the outlook for EOH with a right-sized capital structure.