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EOH announces sale of Syntell

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EOH has announced the sale of MARS Holdings and its subsidiaries and associates, collectively known as Syntell, in a strategic effort to deleverage its balance sheet.

EOH released a statement on Wednesday, 18 November 2020, revealing that it has sold its interest in MARS Holdings and its subsidiaries and associates, which deal in road safety and traffic management in Southern Africa and are collectively known as Syntell.

The sale was to a consortium led by the current executive directors of Syntell, comprising Chief Executive Officer (CEO), Mark Chewins, Chief Financial Officer (CFO), Ametje Rist, executive director, Mike Hellens, Newport Investments (Pty) Ltd and Reonet (Pty) Ltd.

According to the statement, “Syntell requires significant capital investment in the coming years in order to develop key technologies to exploit market opportunities. Given the limited capital available to EOH until such time as the balance sheet is deleveraged, coupled with the extensive knowledge and access to capital that the Management Consortium possess, the value of Syntell to EOH is better optimised through a sale to a new shareholder.”

The sale was made official on Wednesday, 18 November 2020, following the signing over of the shares by EOH to the consortium. The statement also confirmed that it will be business as usual for the company.

See the post below.

Sabelo Makhubo
[email protected]

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