Embattled technology services provider EOH has announced that it is divesting two parts of its business in a bid to further address its debt.

This as the company has agreed to sell its Network Solutions (EOH-NS) and Hymax businesses to SEACOM, with a consideration amount of R144.9 million being touted.

“The proceeds from the sale, net of costs, will primarily be applied to reduce EOH debt further,” the company confirmed in a press release sent to Hypertext.

“EOH has embarked on a targeted disposals strategy which includes assets that are capital intensive. In support of this and due to EOH’s current capital constraints, relative to the Mobile Network Operators (MNOs), and as the Group prioritises creating a fit-for-purpose capital structure, we have looked to ensure that EOH-NS and Hymax can continue investing in world-class infrastructure and maintain their service excellence,” added Stephen van Coller, EOH Group CEO.

Speaking of what the deal could mean for SEACOM down the line, EOH notes that the connectivity capabilities of the former will prove invaluable for existing and future Network Solutions and Hymax clients, as well as transferring employees.

Unfortunately no mention was made of how many employees will be transferring.

“The acquisition of EOH-NS and Hymax forms part of SEACOM’s ambitious growth strategy that will transform the business into a converged telecommunications provider across Africa. By expanding our on-net capabilities and reach with this acquisition and the acquisition of Hirani Telecom and Africell Uganda’s infrastructure, SEACOM aims to provide customers with comprehensive enterprise-grade ICT solutions and quality connectivity,” enthused Oliver Fortuin, Group CEO at SEACOM, in a statement.

You can read the company’s full investor statement on the agreement here (PDF).