Late on Friday, the PIC released a statement in relation to the settlement saying the resolution was in the best interests of their stakeholders.
“ The Public Investment Corporation (PIC) and AYO Technology Solutions Limited (AYO) have reached a settlement of the proceedings instituted in the Western Cape Division of the High Court of South Africa against AYO,” announced the PIC.
The settlement, they said, would give AYO a chance to create growth in the ICT sector.
“The settlement was made an order of court by the High Court, today, 24 March 2023.
The parties have sought to resolve the long-running litigation in a manner that best protects the interests of their stakeholders, in the circumstances, and with a view to giving the business of AYO a chance to create growth and value into the future,” said the PIC.
An insider at the PIC, speaking on condition of anonymity, said that the PIC would retain 25% of AYO which will give it negative control of AYO and the ability to block special resolutions. He said the PIC had voted against some of the resolutions at AYO’s annual general meetings over the last few years, thus allowing the PIC to continue to exercise negative control of AYO.
Based on this information it appears that the PIC, which had a shareholding of 30% in AYO, has sold back 5% to AYO and/or possibly AYO’s main investor, AEEI. It could not be established what the price of the sale was and if it was at the current market price or at a higher price.
When approached for comment, AYO executives said that the terms of the settlement are confidential and other than the required JSE regulations, they are not prepared to comment on the settlement outcome.
Mr Tahir Maepa, General Secretary of the Public Servants’ Commercial Union, has indicated that this is a very good outcome for pensioners of the Government Employees’ Pension Fund (GEPF) as well as for employees of AYO and it makes common sense. “AYO and the PIC should have settled their differences ages ago and not wasted all the monies in court”, he said.