More than 99% of AYO Technology Solutions shareholders vote in favour of delisting

AYO Technology Solutions said Monday that 99.26% of its shareholders at a meeting had approved a resolution to delist the company.

AYO, one of the largest broad-based black economic empowerment information and communications technology groups in the South African market, had informed its shareholders in May this year that it had received a firm intention from its major shareholder Sekunjalo Investment Holdings, to delist AYO via an offer to eligible shareholders. 

The shareholder meeting was originally scheduled for August 29, 2025, but was postponed until Monday. The resolution to delist was approved by shareholders holding 99.26% of the votes.

AYO’s share price increased by 6.72% to 49 cents a share on the JSE by Monday afternoon.

In May, Sekunjalo said it was of the view that if AYO was taken private and delisted, the intrinsic value of AYO group could be increased.

Among the reasons for the proposed delisting was the fact that AYO’s share price had declined since listing in December 2017, and financial audited net losses had mounted, and that the share price had been impacted by negative media reportage.

In addition, audit costs had increased significantly due to the perceived increase in risk caused by the negative media attention, which had also resulted in a delay in the audit being completed for the August 31, 2024, financial year. 

In addition, as an investment technology holding company, AYO and its group of companies entered into various corporate transactions, which required compliance with JSE listing requirements, which in turn resulted in further increased costs and delays, which had impacted the future of AYO.

“The intention for the delisting is not to expropriate shares from minority shareholders, but rather to increase the intrinsic value of AYO for all shareholders,” a statement said.

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