The group says it expects lower future earnings, which means it needs to cut debt by selling noncore assets
EOH’s share price jumped 13.8% to R14.30 on Tuesday morning after the group said it expected to raise R1bn in coming months through asset sales, and that it would use the proceeds to reduce debt.
“Total expected proceeds from the sale of assets over the next three to 12 months are R1bn, which will be applied against gross borrowing,” EOH said. The company’s liabilities added up to R7.5bn at the end of January. “These last six months, including events post-period end, have been extremely challenging for the group,” EOH said.
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