Subsidiary of EOH Holdings EOH Mthombo sold Mars Holdings and its core Syntell business to a consortium led by current Syntell CEOs for a base price of R211 million.

The consortium is made up of Mark Chewins (Syntell CEO), Ametje Rist (its CFO) and Mike Hellens (CEO), as well as Newport Investments and Reonet.

“The transaction is in line with EOH’s stated strategic intention to sell non-core assets as it seeks to adjust the group’s size and deleverage its balance sheet,” EOH said in a statement to investors after the markets closed in Johannesburg on Wednesday.

EOH bought Syntell in 2016.

“Syntell requires a significant capital investment in the coming years to develop key technologies to take advantage of market opportunities,” said EOH. “Given the limited capital available to EOH until such time as the balance sheet is deleveraged, along with the extensive knowledge and access to capital held by the management consortium, Syntell’s value to EOH is best optimized through a sale to a new shareholder . “

EOH will use the proceeds from the sale to reduce debt. Some of the money will be used for working capital requirements, he said.

Results

Syntell describes itself as “the market leader in road safety and traffic management in southern Africa.”

The consortium that Syntell buys paid EOH the base price of $ 11 million in cash. Syntell paid off an EOH shareholder loan of R10.5 million before the sale agreement was signed.

EOH is expected to publish its annual financial results until July 31, 2020 next Thursday, November 26. – © 2020 NewsCentral Media