EOH announces R500-million rights issue plan

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EOH announces R500-million rights issue plan
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EOH Holdings has announced it plans a R500-million rights issue as it moves to deal once and for all with the debt on its balance sheet.

services group EOH Holdings has announced it plans a rights issue to raise up to R500-million as it moves to deal firmly with the high levels of legacy debt on its balance sheet.

“The proceeds will be used to settle the majority of the bridge facility; will leave the group with a fit-for-purpose capital structure; and allow management and staff to focus on the group’s exciting growth potential,” EOH said in a statement alongside its full-year results, published on Thursday.The shares were last trading down 2.3% on news of the rights offer, changing hands at R4.30 each.

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