Sekunjalo moves to take AYO private, citing growth prospects
Image: Independent Media File
Sekunjalo Investment Holdings has made a firm offer to acquire all remaining shares in AYO Technology Solutions Limited, the country's largest black-owned and managed ICT investment group, signalling its confidence in the company's long-term value.
Sekunjalo, which already holds a 45% majority stake in AYO, announced on Thursday it has also proposed a voluntary delisting of the firm from the Johannesburg Stock Exchange (JSE).
The offer would allow shareholders to either exit with liquidity or remain invested in a private structure poised for future expansion.
I
n a statement, Sekunjalo said it believes taking AYO private represents a strategic step that will unlock significant value and better position the company for sustained growth.
'Delisting AYO will enable the company to focus on execution and transformation, rather than the administrative burdens and volatility associated with public markets,' the group said.
'We remain committed to supporting inclusive economic empowerment and using technology as a lever for growth across the continent.'
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Sekunjalo highlighted its track record with other companies it has taken private, including Premier Fishing and Brands and African Equity Empowerment Investments (AEEI), noting that both had flourished outside the constraints of the public markets.
The group cited several reasons for pursuing a delisting, including the high costs of maintaining a JSE listing, regulatory restrictions on agile decision-making, and what it termed the persistent misrepresentation of AYO's history in the public domain.
These factors, it said, have hampered the company's ability to contribute meaningfully to South Africa's digital economy and capital markets transformation.
Sekunjalo's association with AYO dates back more than two decades, through early investments made via Sekunjalo Healthcare and later HST.
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