PIC board plans to examine controversial Ayo investment
The public controversy and possible reputational risk of the Ayo transaction caused considerable consternation among the PIC board
The Public Investment Corporation (PIC), which paid R4,3bn to take up the full initial public offering of Ayo Technology in December 2017, says its board plans to examine the transaction in the light of the controversy it has stirred. The decision to fund Ayo did not come before the board at the time of the decision as it was within the delegated authority of management to deliberate on the matter. But "negative media reports" had caused some members of the board to request that the board investment committee examine the transaction at its next meeting, PIC spokesman Deon Botha said on Monday. "The investment committee wants to ensure that all investment processes were followed and also ensure that the delegation of authority deals with matters like these in the correct way, in line with best practice." Particularly controversial has been the PIC’s valuation of Ayo. At the end of August 2017, financial statements show that it had total assets of R292m and a book value of R67m. For i...