AYO Technology shares surge 20% following Sekunjalo Investment Holdings' acquisition offer
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.
BUSINESS REPORT
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
What the SARB rate cut means for traders
The South African Reserve Bank (SARB) has cut interest rates by 25 basis points, bringing the repo rate to 7% and the prime lending rate to 10.50%, marking a key shift in its monetary policy stance after months of tightening and holding. For investors and traders, this move signals renewed support for growth and a more accommodative approach to managing inflation, according to CFI Financial Group, a leading global online trading provider. A rate cut often reflects growing confidence that inflation is under control, while also recognising the need to stimulate spending and investment amid a fragile global backdrop. 'A rate cut of this nature tells us the SARB sees room to boost the economy without risking runaway inflation,' says Zihaad Israfil, CEO of CFI Financial Group South Africa. 'For traders, this is a signal to re-evaluate strategies, particularly in growth-sensitive sectors and currency markets.' With borrowing costs reduced, confidence in risk assets like equities typically improves. Sectors tied to domestic consumption and infrastructure often benefit, while the weaker rand—frequently a by-product of lower rates—can create volatility and opportunity in forex markets. For those tracking pairs like USD/ZAR or assessing momentum on the JSE, market sentiment is likely to shift in the coming days.
IOL News
5 hours ago
- IOL News
HCI's Copelyn: we are moving ahead with the Brulpadda and Luiperd offshore gas fields
The location of the Block 11B/12B offshore oil and gas exploration block in the Outeniqua Basin, 175 kilometres off the southern coast of South Africa, where two significant condensate and gas discoveries, Brulpadda and Luiperd, have been found. The illustration above was provided by TotalEnergies, which has since announced its withdrawal from the project. Image: Supplied The Brulpadda and Luiperd offshore gas finds, the only multi-trillion cubic feet gas discovery in South Africa, are national assets that can be profitably exploited and simply must be developed, said Hosken Consolidated Investments (HCI) CEO John Copelyn. He detailed HCI's progress on these gas discoveries in the latest integrated report, which was released on Friday. JSE-listed HCI is a well-diversified investment holding company with interests that include businesses in casinos, hotels, energy, mining, transport, property, and media. Last year all the international partners exited the gas project. HCI controls Impact Oil & Gas (IOG), which in turn will own 48% of Toronto-listed Africa Energy Corporation (AEC). AEC had held a 10% interest in the discoveries, Block 11B/12B, but it will become the operator after the international partners in 2024, led by the previous operator TotalEnergies, and CNR International and QatarEnergy International, withdrew from the project, which had raised questions about the project's viability at the time. 'Pursuant to our commitment not to abandon the discovery, we set about negotiating a number of agreements that will hopefully transform our ability to deliver progress,' said Copelyn. Firstly, AEC was funded to rid it of debt. Then an agreement was reached with the partner in IOG to unbundle its stake in the shareholding of AEC. These two agreements would result in HCI having a direct 48% shareholding in AEC. 'We have released Rob Nicolella from his work in HCI to focus full time on his role as CEO of AEC. There have also been changes in the AEC board, which has effectively released it from its former control structure, including the appointment of Phindile Masangane as an executive director,' said Copelyn. He said management of AEC had also been strengthened by the inclusion of several consultants 'with long and interesting CVs' appropriate to assisting in the development. 'AEC has reached an agreement with Arostyle Limited to resolve several incipient disputes and to simplify its relationship. AEC will acquire a 75% interest in the block, with Arostyle acquiring the remaining 25%, upon the approval of the production right in the blocks and the simultaneous departure of the international partners,' he said. AEC had taken transfer of the documentation on the block from TotalEnergies. AEC had submitted an application for the environmental impact assessment relating to the production right application. 'This has involved holding public hearings that were broadly advertised. The Department of Minerals and Energy has recently signed off on its scoping report, which has allowed AEC to proceed to the next phase of this application. We hope that the actual production right will be granted in the first quarter of 2026,' said Copelyn. He said they were also making progress in establishing an off-taker for the gas and condensate. The condensate was easily sold in the international market, but 'the gas is more of an issue,' said Copelyn. One possibility was to use the gas as fuel for a gas-to-power plant at Mossel Bay. This would potentially provide South Africa with much-needed base electricity supply with less than half the emissions of the current coal-fired power stations. 'We have negotiated access to a piece of land owned by the Garden Route District very close to the Gourikwa plant, which we believe is suitable to house a gas-fired power plant. We are pursuing all the regulatory permissions required for this in anticipation of such an off-take,' said Copelyn. However, such off-take was unlikely to use all the gas available in a commercially sensible time frame. In addition, there were difficulties in hedging currency risks where customers of the electric plant pay in rands and the gas is priced in US dollars. 'Alternatively, it may be possible to provide a Floating Liquefied Natural Gas solution, which would allow the gas to be converted to liquefied natural gas and then sold in the same manner as the condensate. AEC will continue to work on these issues pending the grant of the production right,' said Copelyn. He said the Brulpadda and Luiperd discoveries were significant indigenous resources, which could provide crucial relief to South Africa's energy crisis, enhancing energy security by providing access to a long-term, reliable, baseload energy source. It would also reduce dependency on coal, diesel, and foreign imports, through the addition of an indigenous, low-carbon fuel, to its energy mix. Visit:
eNCA
10 hours ago
- eNCA
Matengu mining company takes JSE to court
JOHANNESBURG - Mantengu Mining is at loggerheads with the Johannesburg Stock Exchange (JSE). The mining company has taken the JSE to court after it refused to allow it to publish a full SENS announcement through the bourse. Mantengu says it needs to disclose to the price-sensitive market information. The company also claims that it's share price was manipulated.
