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RMB – a division of FirstRand Bank Limited, is an Authorised Financial Services and Credit Provider NCRCP20.
Copyright © RMB 2026. All rights reserved.
RMB – a division of FirstRand Bank Limited, is an Authorised Financial Services and Credit Provider NCRCP20.
Copyright © RMB 2026. All rights reserved.
MEDIA RELEASE
13 February 2023
RMB jointly advised EOH Holdings on its recently concluded capital raise in the form of a R500m rights offer to existing shareholders and a R100m subscription for shares in the company by its strategic BEE shareholder, Lebashe Investment Group.
The transaction also included a restructure of EOH Holdings' existing BEE deal which was set to mature in 2023. The newly restructured deal has, among other things, been extended by an additional five years, and sees Lebashe Investment Group make a significant re-investment into EOH Holdings. Lebashe and EOH Holdings also entered into a new relationship agreement to further enable Lebashe to add value as a strategic partner of EOH Holdings.
The capital raise was the final step in EOH’s turnaround strategy and. was unanimously supported and approved by shareholders in the December EGM. Working alongside EOH to meet its objectives, the RMB team delivered a sophisticated solution that seeks to right-size the company’s capital structure, enhance the company’s BEE credentials and position the company for growth.
Sibonelo Mdluli, Corporate Finance Transactor at RMB said: “Leveraging its extensive equity capital markets, mergers & acquisitions, and technology, media & telecoms sector expertise, the RMB team worked with EOH to deliver a solution that is net-positive for the various key stakeholders involved, including the company, shareholders and the company’s lenders. The transaction demonstrates RMB’s ability to deliver innovative solutions to our clients’ most complex challenges.”
The RMB team co-managed this complex transaction from conceptualisation, to structuring and implementation. “An extensive investor engagement process was undertaken.
This allowed EOH to launch a capital raise with existing shareholders committing to taking up at least 30% of the rights offer. New strategic investors were approached to underwrite the remainder of the rights offer to ensure the capital raise was fully de-risked,” said Mdluli.
The successful implementation of this transaction has paved the way for the company to refinance the remainder of its debt into a funding package with a single lender.
RMB’s Head of Equity Capital Markets, Dave Sinclair said: “We are proud of the positive outcome that has been delivered in this transaction and believe that the successful conclusion of this transaction will now allow EOH management to focus on driving the company’s growth and delivering value to shareholders.”
RMB acted as joint financial advisors on this transaction.
End
Contact:
Kate Kelly l RMB l kate.kelly@rmb.co.za
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