The JSE will soon lose another technology counter as Iqbal Survé’s Sekunjalo Investment Holdings has made an offer of R80m to buy all the shares in Ayo Technology Solutions it does not already own.
On Friday, Ayo said it had received the offer for a cash consideration of 52c a share, translating into a total of R80,772,531 from Sekunjalo.
This constitutes a firm intention offer for the 155.3-million shares in Ayo that Sekunjalo does not already hold, which will be settled in cash. The offer is subject to the approval of a proposed delisting from the JSE.
A thinly traded stock, Ayo was up 20% to 48c at one stage on the JSE on Friday. It closed 12.5% higher at 45c, but the share price is still down 10% year-to-date. The company, often the subject of controversy, has not had a good run in the market.
Sekunjalo is of the view that if Ayo is given time away from public scepticism, “the intrinsic value of the Ayo group can be increased over time for all shareholders”.
In early 2024, Ayo and African Equity Empowerment Investments (AEEI), another company associated with Survé, came close to having their shares suspended from the JSE after both failed to release their annual reports within the prescribed time period. Ayo also attracted attention the year before when it was fined about R1.5m by the JSE for lack of transparency.
At the time, the JSE said Ayo had failed to publicly disclose money that was moved between related companies. The fine related to Ayo, its holding company and major shareholder AEEI and transactions with asset manager 3 Laws Capital.
Ayo’s reputation was also sullied when the Mpati commission of inquiry into the Public Investment Corporation (PIC) showed in 2020 that the asset manager’s subscription of shares in Ayo was grossly overvalued. The PIC and Ayo have since resolved the matter.
“Ayo’s share price has declined significantly since listing in December 2017 and has reported a constant increase in audited net losses year on year. This can be seen from its latest results released on March 31 2025 and April 25 2025,” the group said.
“This decline in share price and increase in net losses is mainly due to recurrent negative media reportage. It is highly unlikely that the value destroyed through these campaigns will be reversed in the near future. Ayo shares are highly illiquid and it will be difficult for Ayo shareholders to dispose of their shareholding in the open market.”
The group also bemoaned the costs of maintaining a listing, as well as the associated bill for auditing.
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