Troubling times after Ayo deal fails
The collapse of the transaction with British Telecoms SA comes at a tricky juncture for the PIC and Iqbal Survé’s Sekunjalo
The Ayo share price has seemingly been trapped at a low of R24 since the company announced that a deal, widely assumed to have been a slam-dunk, is off for now. Investors may be waiting to hear when the deal will be back on, or to see some sign of the "list of acquisitions" Ayo referred to in a Sens statement in April. At the time, Ayo promised to announce details of all the transactions it intends concluding, in line with the JSE’s requirements. So far there’s been no explanation why the proposed transfer of 30% of British Telecoms SA (BTSA) from African Equity Empowerment Investments (AEEI) to Ayo lapsed (see page 43). There has only been a bland statement: "Shareholders are hereby advised that the subscription agreement has lapsed and that the parties are engaging with each other to have the agreement reinstated. Shareholders will be advised should the agreement be reinstated." The transfer of the BTSA stake from controlling shareholder AEEI, in exchange for R990m, was widely reg...
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