Shares in EOH Holdings plunged by as much as 34.3% in Johannesburg on Tuesday morning after news emerged late on Monday that Microsoft had terminated two partner agreements with the JSE-listed technology services group.
TechCentral reported that Microsoft served notice on EOH Mthombo on Friday that it plans to terminate the company’s Licensing Solution Provider agreement and its Microsoft Partner Network agreement.
EOH holds the Microsoft agreements through its EOH Mthombo subsidiary. They expire 30 days from the date of the notice of termination.
An EOH delegation, led by CEO Stephen van Coller, is due to meet with Microsoft South Africa later on Tuesday to discuss the developments. More clarity is likely to emerge after that meeting.
A Microsoft spokeswoman declined to say why the agreements had been terminated.
EOH Holdings head of investor relations Debbie Millar confirmed that the agreements had been terminated by Microsoft South Africa but said that the group has not been given reasons by the software giant.
“We are engaging with them to understand their decision,” Millar said.
This article was published with the permission of TechCentral. The original publication can be viewed here.