CAPE TOWN – AYO has successfully raised capital to augment its profitable existing businesses to grow and acquire new business. Incidentally, when AYO went to market, the share issues were oversubscribed by more than R1bn, excluding the PIC. The company elected to only take up the PIC offer since its empowerment status would still be intact.
This self-same model is used by countless other companies when their executives approach investors. Their executives are innovative and forward thinking when they present business plans to grow successful companies and, notwithstanding the valuation of those companies, the market tends to applaud them for innovation.
The subliminal racism of people like Magda should not be surprising since, in their world, black people (according to Magda’s now infamous tweet), should be employed as “gardeners” and “cleaners” and by implication, should not own successful JSE-listed companies and should not be in boardrooms for anything other than cosmetic purposes, and of course, to serve the tea.
It comes as no surprise that Magda would attack the fact that AYO involved BBBEEs and union groups in their transaction, since this is precisely what subliminal racists do. In their minds, they must control the BBBEEE groups so that economic power rests with them.
The fact is that the BBBEEs and union groups were offered shares in order to strengthen the BEE shareholding of AYO to comply with Icasa as well as customer requirements. And this was no secret.
But what is Magda actually protecting? A privileged minority, racial arrogance, hypocrisy, of course, whilst enriching herself at the expense of the new South Africa. Ironic? Her role in undermining a black business icon with African Harvest is an important story that must still be told. Watch this space – it is time that South Africa gets to know the real Magda.
I believe that AYO is the victim of an orchestrated and organised disinformation campaign with the sole purpose of undermining its legitimate business and to prevent black business success in South Africa.
Magda and her ilk should be called out and held accountable for promoting a narrative which is deliberately in conflict with the transformation of the South African economy and the country’s social order.
The JSE consists of several companies which have been the subject of massive value destruction in recent times, with billions of rand being lost. Just take a look at MTN, Woolworths, Steinhoff, Group Five, Aveng and Lonmin, to name a few.
And then there is the matter of her distorted understanding of the valuation of ICT companies. Any person who can read financial statements will tell you that ICT companies are valued on future earnings and not on net asset value. One just has to look at the mighty Dimension Data and at its peak, EOH which, by the way, missed Magda’s beady eye – and look how their value has plummeted.
We have yet to hear Magda commenting on these companies, including her own which share prices has halved in recent times. Her racial bias is shocking. AYO has not lost a cent for any shareholder and is yet to deploy its capital for the benefit for all shareholders. The hypocrisy is that any other company would be given the time and space to execute its business plan. In AYOs case, there is a deliberate attempt to undermine, sabotage and stifle its business plan. After doing all of this, they claim that AYO is not successful.
Rosemary Mosia is an independent non-executive director of AYO Technology Solutions Limited and the deputy chairperson of Sagarmatha Technologies. She holds a BComm Accounting degree from the University of the North; a postgraduate diploma in management at Wits Graduate School of Business; a Masters in Business Leadership from Unisa and she is currently studying towards a Higher Certificate in Tax Law at UCT.
The views expressed here are not necessarily those of Independent Media.
- BUSINESS REPORT