JSE-listed EOH has revealed the name of its new specialised solutions company as Nextec, while its information and communication technology (ICT) business will continue to operate under the EOH brand, the company said in a statement on Wednesday.
This follows after the group, in March, announced plans to split the group into two distinct and independent businesses, each with its own CEO, brand and identity, business model and growth and go-to-market strategies.
The two will operate as independent businesses under the listed EOH Holdings, with the reconfiguration to be completed by August 1. EOH Holdings CEO Zunaid Mayet will take over as CEO of Nextec and has resigned from his role in EOH Holdings.
Further, the EOH Holdings corporate structure will be responsible for corporate finance, corporate strategy, group reporting, investor relations, risk and compliance.
“In addition to the growth expected from the two businesses described above, EOH Holdings will drive growth in the areas of innovation, own-intellectual property software, international business and emerging technologies,” the statement said.
Former EOH ICT CE Rob Godlonton has been appointed CEO of the EOH-branded business.
“The board is in the process of finalising the appointment of a CEO for EOH Holdings. The appointee is highly regarded, with a solid record and a strong background in corporate finance, investment banking and technology. Further details on the new CEO will be made available in the coming weeks,” the company said.
“To further strengthen governance across the group and to support the new business model, EOH Holdings has decided to reconfigure its board."
Former head of business engagement for Africa at the World Economic Forum Jesmane Boggenpoel and former group chief compliance officer for Liberty Life Ismail Mamoojee have been appointed independent nonexecutive directors, as well as governance and risk committee and audit committee chairpersons, respectively.
Meanwhile, law firm ENSafrica’s review of the commercial activities of subsidiary the GCT Group, which includes the controversial former police information technology service provider Forensic Data Analysts, “found no evidence implicating EOH of complicity, awareness or condonation of any illicit activity that may or may not have taken place.”
“ENSafrica also found that a comprehensive due diligence was conducted prior to the acquisition of GCT and that there was no adverse information regarding GCT at the time. Accordingly, there was no impediment to engaging with GCT.”
EOH had acquired the GCT Group companies in 2015 and was unwinding its ownership of this group.
“The unwinding involves selling back the companies in the GCT Group to the former shareholders for an amount of R365-million, which is equal to the cash originally paid and the value-adjusted EOH shares originally transferred,” EOH said in a January statement.
The unwinding is expected to result in a noncash, one-off reduction in consolidated earnings of R385-million for the financial year ending July 31, 2018, comprising R169-million in previously recognised profits in the 2016, 2017 and 2018 financial years 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, the January statement said.
Meanwhile, “ENSafrica will continue to perform an ongoing risk-based, monitoring and oversight role in all of the group’s major public sector bids, contracts and engagements,” EOH said on Wednesday.
ENSafrica has also overseen EOH’s review of all material current public sector contracts to ensure that governance relating to these contracts was adhered to. EOH Group has adopted a checklist that was developed with ENSafrica to further enhance governance and to promote consistency relating to public sector engagements.
“ENSafrica has worked with EOH Group to further develop and strengthen its due diligence procedures to ensure that all new business partners are optimally screened to enhance business partner selection.”
Additionally, the law firm is supporting EOH Holdings with its group regulatory compliance framework and the adoption and implementation of the key principles of ISO 37001, which is the international standard for Anti-Bribery Management Systems.
“This ensures the group is in line with international best practice governance and regulatory compliance standards, while meeting local and global requirements,” EOH stated.