AYO Technology shares surge 20% following Sekunjalo Investment Holdings' acquisition offer

Shares in technology group AYO Technology Solutions Limited (AYO) leapt 20% after Sekunjalo Investment Holdings (Sekunjalo) on Friday confirmed that it has made a firm offer to acquire all remaining ordinary shares in South Africa’s largest black-owned and managed ICT investment group not already held by it or its related parties.

Sekunjalo currently holds a 45% majority shareholding in AYO. Sekunjalo has also submitted a proposal for the voluntary delisting of AYO from the JSE.

"Sekunjalo will acquire the Offer Shares, being a maximum of 155 331 790 shares, in respect of which valid acceptances are received prior to the closing date of the Offer, for a total maximum Offer Consideration of R80 772 531," AYO said.

It said the Offer will be subject to the condition that the proposed delisting, pursuant to the voluntary delisting provisions of the Listings Requirements, is approved by at least 75% of shareholders present or represented by proxy at the General Meeting and the JSE.

Sekunjalo said in a statement, "We hope shareholders will remain on this journey with us, but we also recognise that some may prefer to exit. This offer allows for both – providing liquidity to those who wish to sell and stability for those who believe in the future of AYO.

"Sekunjalo firmly believes that transitioning AYO into a private company is a strategic and positive step that will unlock significant value and better position the company for long-term growth."

The shares in AYO by midday Friday on the JSE surged 8 cents to 48 cents.

Sekunjalo also said that it has a proven track record of investing in and supporting companies post-delisting, including Premier Fishing and Brands and African Equity Empowerment Investments. It said these, and others, have flourished outside the constraints of public markets."The same  opportunity now exists for AYO," it added.

The decision to propose delisting is underpinned by several factors, including the high cost of maintaining a listing, the limitations imposed by regulatory requirements on agile decision-making, and the persistent misrepresentation of AYO’s history in the public domain, which has hampered its ability to grow and contribute meaningfully to South Africa’s digital economy and capital markets transformation, Sekunjalo said.

Sekunjalo has been a long-term investor in AYO for more than two decades, dating back to its original investments through Sekunjalo Healthcare and later HST. The Group remains deeply committed to technology as a lever for inclusive economic empowerment and continental growth.

AYO, which maintains a diversified technology investment portfolio with strong underlying subsidiaries, stands to benefit from the ability to pursue its strategy without the volatility and distractions of public listing status. Sekunjalo strongly believes that AYO’s executive leadership, who have already stabilised operations and streamlined cost centres, will be better placed to drive innovation and expansion in a private structure.

Sekunjalo said, "Delisting will allow the company to focus its energy on execution and transformation, rather than compliance and litigation.  This is about putting AYO and its subsidiaries in a position to thrive - here at home and across the continent."

AYO said, in accordance with the requirements of the takeover regulations, it has constituted an independent board comprising Rosemary Mosia, Sello Rasethaba, and Adv Ngoako Ramathlodi (Independent Board) for purposes of evaluating the terms and conditions of the offer.

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