CAPE TOWN - Days after announcing it’s interim financials which showed significant growth and that it has concluded a long-term multi-year partnership agreement with Sasol, AYO Technology Solutions Limited (AYO) today confirmed its acquisition of 30% of shares in British Telecommunications South Africa (BTSA).
The deal is in accordance with the growth plans and parameters of its pre-listing-statement (PLS) in 2017 and makes good on its commitments in this regard.
Listed on the Johannesburg Stock Exchange (JSE), AYO is one of the leading empowerment groups in the South African ICT sector. The company provides turnkey ICT products and services to a broad array of local and international clients.
AYO acquired the stake in BTSA from African Equity Empowerment Investments Limited (AEEI). The rationale behind the transfer was to collectively group all technology focused investments and create further value in one vehicle, namely AYO. In addition, it will be generating direct market access and providing 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.
Kevin Hardy, Chief Executive Officer of AYO said, "The strategic relationship and incorporation of the BTSA products and services into the AYO ecosystem, together with the company’s empowerment credentials, now allows AYO to engage with a greater number of large multinationals operating in South Africa and abroad.”
As per the SENS announcement, “Questco Proprietary Limited, an independent expert, was appointed to compile a fairness opinion on the Subscription value in terms of paragraph 10.4(f) of the JSE Listing’s Requirements. Questco has considered the terms and conditions of the Subscription and is of the opinion that the terms and conditions of the Subscription are fair to the shareholders of AYO Technology Solutions Limited”.
“We welcome the confirmation of this transaction, this is another achievement for AYO as set down in the PLS, 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,” Hardy added.
As afore-mentioned, AYO recently signed a multi-year contract with multinational company, Sasol. AYO will provide and manage Sasol’s entire global technology network, communication and security services. This deal is said to have a material impact on the revenue and earnings of AYO, with its shares surging 20% on the JSE on Friday, 26 May 2018 after the announcement was made.
The Group has grown considerably over the past couple of years showing an impressive growth of 173% for its interim results to 28 February 2018.
AYO currently services more than 1 000 customers in Southern and Nothern Africa, Europe and Mauritius, including more than 400 call centres throughout the continent. The company also holds key value-added reseller or supplier agreements with principals such as Nokia, Siemens Networks South Africa, Plantronics, InterSystems Corporation, Cisco Systems, Microsoft Corporation, IBM and Riverbed Technology.
AYO, through its subsidiaries amongst others, is one of the Top 3 ICT integrators in Africa and the leading healthcare ICT solutions integrator. The Group services 350 National Health Laboratory sites and implemented ICT programmes in more than 45 hospitals and 65 clinics in the Western Cape, which equates to 25% market share of the public hospital sector. The Group has an exceptional record of accomplishment, with successful implementation at Groote Schuur, Tygerberg and Red Cross Hospitals.
AYO has already commenced its resolute growth and transformation plans and is currently employing more than 200 staff to service the market. The Group will be increasing its staff complement to more than 600 people in the near future.
Since listing, AYO has positioned itself as a leading black economic empowerment (BEE) ICT company and has a strong, dynamic management team with a proven track record. AYO already exceeds the new Broad-based Black Economic Empowerment ICT codes with its 77% Black ownership of which 36% are Black female owners.
- BUSINESS REPORT ONLINE