AYO Technology Solutions said Thursday that a share repurchase agreement with the Public Investment Corporation (PIC) in 2023 was executed based on advice from advisors at the time and was made in good faith and in alignment with the legal guidance provided.
“AYO acknowledges the JSE’s decision to issue a public censure and to suspend the application of a fine for five years and affirms its support for the JSE’s ongoing commitment to market transparency and investor confidence,” the company said.
AYO stated that the period surrounding the PIC settlement was marked by a wave of media scrutiny and speculative reporting, much of which misrepresented the intent and content of the agreement.
“AYO remains committed to correcting the narrative by continuing to act in the best interests of its shareholders and in compliance with the regulatory framework that governs its operations. AYO has co-operated fully with the JSE throughout this process and takes its obligations under the Listings Requirements seriously,” the company said in a statement.
AYO had been trading under cautionary from 6 March 2023 due to legal proceedings between the company, the PIC, and its main client, the Government Employees Pension Fund (GEPF).
On 24 March, AYO announced that legal proceedings between it, the PIC, and the Government Employees Pension Fund (GEPF) had ceased following an amicable settlement agreement between them. The terms of the agreement were not disclosed in this announcement, as the parties in the dispute had cited the terms as “confidential.”
The next day, the terms were published in the media that AYO had agreed to repurchase shares from the GEPF for around R600 million; there was a further repurchase option granted to the GEPF, while certain minority protections were afforded to the GEPF.
The JSE then stated that the terms of the repurchase needed to be published. On 4 April, the JSE directed AYO to publish a further supplementary SENS announcement, which was done on 18 May, with all the required information.
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