Moneyweb to report Ayo to JSE for Companies Act contravention

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Companies are required to be transparent and accountable, but that doesn't seem to be the case with the controversial Ayo Technology Solutions.

From one extreme to the other – Ayo’s then CEO Kevin Hardy used a vuvuzela to amplify the noise around the company when it listed on the JSE in December 2017. Picture: Moneyweb

Ayo has made a number of large share issues over the last few years. However, the only large shareholdings evident in its publicly available share register are those of African Equity Empowerment Investments , part of Iqbal Survé’s Sekunjalo Group, and the Public Investment Corporation . There are also a few anomalies the shareholder register may clear up.The Ayo pre-listing statement states that on September 1 2016 Ayo issued 6 854 000 shares at R1.

Cross-referencing this to the AEEI annual financial statements as at August 31 2018, there is a further discrepancy. Note 6 of the statements states: “As part of the consideration for the purchase of Kalula Communications Ltd t/a Headset Solutions [by AEEI] the sellers obtained 6.5 million ordinary shares in Ayo on September 1 2016. Additionally, as a contingent acquisition consideration paid to the sellers of Puleng Technologies Ltd, the Group [AEEI] would issue 3.

Were special trusts established to accept and hold these shares on behalf of the various consortiums, or were these shares issued to individuals? Who were the individuals who were issued with the shares? These questions will also be answered by the shareholder register.It is interesting that the circular to shareholders includes the issue of shares at R1.50 and the intention to issue shares for the maximum amount of R4.3 billion within the same period.

The register of members and register of directors of a company must be open to inspection by any member, free of charge, and by any other person upon payment for each inspection of an amount not more than R100.

 

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