The group says it expects lower future earnings, which means it needs to cut debt by selling noncore assets
EOH’s shares jumped as much as 52.7% to R19.85 on Tuesday morning — the best level in six weeks — after the technology group reported results for the six months to January and said it would raise R1bn through asset sales to reduce debt.
EOH said on Tuesday it had impaired the value of certain assets by R1.7bn. Its net asset value fell 39% to R4.6bn. Eight assets were up for sale and the company had already received binding offers for two of them, van Coller said.New group finance chief Megan Pydigadu said the company aimed to use the proceeds to reduce debt. It aimed to reduce its debt-to-earnings ratio to 1-1.5 times.The company, which had liabilities of R7.5bn at the end of January, reported an interim loss of R3.3bn, from a R70.9m profit a year before.
"This has accelerated shareholder value destruction and raised further questions about historic governance practices,” the company said.
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