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EOH's fraud-ridden unit sells tech group to help settle debt

Oct 17 2019 21:11

EOH Mthombo, the fraud-hit subsidiary of EOH, is disposing of its 100% interest in Data World, Xcallibre and Evaluations Enhanced Property Appraisals, which together make up the Data World Group.

The group will be taken over by Terra Analytics for cash and the relief of outstanding liabilities, EOH said in a statement on the JSE Stock Exchange News Service on Thursday evening. 

The total value of the transaction is R101.8m, according to the statement.

Data World Group's net assets were valued at R87.7m in July, EOH said.

EOH recently admitted to almost R1bn in fraudulent transactions with government departments, including overbilling and ghost contracts. The wrongdoing was concentrated at EOH Mthombo, it added. An EOH spokesperson told ITWeb that EOH Mthombo will be closed within two years following the revelations.

According to Terra Analytics' website, it "was founded to enhance decision-making through advanced data visualisation" and it works towards solving "earth science problems".

The deal is still subject to certain conditions. It is not, however, subject to the approval of EOH shareholders.

Earlier on Thursday, Business Insider reported that under a new plan put to shareholders by EOH, non-executive directors were set to get fee increases of 40% for specialised meetings and a minimum of 20% more for ordinary meetings. The extra fees were required to clean up "legacy governance issues", according to the company. 

Compiled by Marelise van der Merwe

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