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JOHANNESBURG – African Equity Empowerment Investments (AEEI), an investment holding company in the stable of businessman Iqbal Survé’s Sekunjalo group, is set to unbundle its shares in AYO Technology.
AYO is a company, which was expected to be heading to court yesterday in a bid by the Public Investment Corporation (PIC) to get its money back.
The unbundling comprises the distribution of 49.36 per cent of the total issued share capital of AYO, and at current share price this is worth about R509.6 million.
Sekunjalo is the largest shareholder of AEEI, holding 61.86 per cent as of the latter’s 2021 financial year.
AEEI said in a statement the decision, made in January and still subject to shareholder approval, came amid a consideration of its portfolio composition, with three JSE-listed entities forming part of the AEEI group, namely AEEI, AYO, and Premier Fishing and Brands.
This came with considerable administration constraints, costs and challenges placed on AEEI and its constituents, it said, and the move would help with significant cost savings in terms of management fees and shared services and unlock value shareholders as AEEI’s share price is currently trading below the net asset value.
Premier also looks set to delist, with
Sekunjalo announcing on Friday that it had replaced AEEI as the party that will buy out minority shareholders, who have less than 10 per cent of that firm.
The move also comes as the PIC looks to set aside the subscription agreement that saw it invest in AYO upon listing, with proceedings set to commence from yesterday. AYO said in a statement on Monday it would oppose this and was confident in its position.