Cape Town. Kevin Hardy, CEO of AYO Technology Solutions. Picture Ian Landsberg/African News Agency (ANA)

JOHANNESBURG - AYO Technology Solutions, the listed empowered ICT company that provides turnkey ICT products and services to a broad array of local and international clients, has confirmed the acquisition of 30 percent of the shares in British Telecommunications South Africa (BTSA) for an undisclosed amount. 

The transaction follows days after AYO reported significant growth in the six months to February and that it had concluded a long-term multi-year partnership agreement with Sasol. 

Kevin Hardy, the chief executive of AYO, said yesterday that the BTSA deal was in accordance with the growth plans and parameters of AYO’s pre-listing-statement last year and made good on these commitments. 

AYO acquired the stake in BTSA from African Equity Empowerment Investments (AEEI). 

The rationale behind the transfer was to collectively group all technology focused investments and create further value in one vehicle, AYO. In addition, it would generate direct market access and provide symbiotic benefits to both AYO and BTSA due to its ownership and a strong alliance agreement. 

BTSA has also been a consistent and growing dividend- yielding investment for the group. 

Credentials 

“The strategic relationship and incorporation of the BTSA products and services into the AYO ecosystem now allows AYO to engage with more large multinationals in South Africa and abroad,” Hardy said. 

Independent expert Questco Proprietary Limited, which was appointed to compile a fairness opinion on the subscription value in terms of the JSE listing requirements, concluded that the terms and conditions of the subscription were fair to AYO shareholders. 

Hardy welcomed the confirmation of the transaction. 

“This is another achievement for AYO as set down in the pre-listing statement and we look forward to sharing further news with the market and our stakeholders as we progress. 

“BTSA has been a significant partner to the group and is an integral part of AYO’s further growth and transformation strategy,” he said. 

In terms of the recently signed contract with Sasol, AYO would provide and manage Sasol’s entire global network technology network, communication and security services. 

The deal was expected to have a material impact on AYO’s revenue and earnings and led to the price of AYO’s shares surging by 20 percent on Friday, the day after the transaction was announced. 

The group has shown significant growth over the past few years and achieved a 173 percent growth in profit before tax to R82 million in the six months to February from R30m in the prior period. 

Shares in AYO rose 2.5 percent on the JSE yesterday to close at R41.

-BUSINESS REPORT