African Equity Empowerment Investments (AEEI), which listed Premier Fishing and Brands in March, is hoping to raise a truckload of new capital by floating its acquisitive technology army on the JSE. On Friday the AEEI board approved plans for private placement of R3.7bn to R5.7bn for Ayo Technology. Ayo offers an array of services in the information technology and telecommunication sector as well as a 30% stake in British Telecoms SA (BTSA). Ayo holds a 25% market share of the public hospital sector and boasts blue-chip clients like Nokia, Siemens, Cisco and Microsoft. The size of the envisaged private placement is likely to raise eyebrows as Ayo was valued at about R3bn in the group’s recent year to end-August results. A market watcher suggested that Ayo should probably have tested the investment community’s appetite before embarking on such an ambitious capital-raising exercise. The proposed fund-raising exercise should reduce AEEI’s holding in Ayo from about 80% to about 49%. A c...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now