BUSINESS MAVERICK: Dan Matjila says he was satisfied AYO Technology’s R43-a-share valuation was reasonable. Experts strongly disagree

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BUSINESS MAVERICK: Dan Matjila says he was satisfied AYO Technology’s R43-a-share valuation was reasonable. Experts strongly disagree By Ray Mahlaka rayMahlaka

By all accounts, the Public Investment Corporation , which manages about R1.8-trillion in government employees’ pension money, has been unusually benevolent to Iqbal Survé and his controversial firm, AYO Technology Solutions.

The PIC’s investment has since become a dud because AYO’s illiquid shares are now trading at R9 a share – meaning that the PIC and by extension, 1.7 million current and former government employees have lost R3-billion in the scandal. In AYO’s draft pre-listing statement, the company’s shares were stated to be issued at a price of between R28 a share and R43 a share. A pre-listing statement details the number of shares a company plans to sell to investors and their value. It also explains the company’s financial performance that investors can use to determine the value of shares.

Seanie said no substantive due diligence was done by the PIC on the deal and it was rushed to benefit AYO, which approached the state-owned asset manager with a “fixed” R43-a-share valuation that was not negotiable.

 

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