Ayo Technology Solutions has been suspended from trading on the JSE due to its failure to publish its annual report for the year ending August 2024. This suspension is the latest challenge for the company, which is part of Iqbal Survé’s Sekunjalo group. Ayo’s share price has plummeted to 40 cents, a significant drop from its 2017 peak of R45.
Ayo CEO Amit Makan expressed regret over the suspension but assured stakeholders of the company’s commitment to transparency. He attributed the delay to the need for an external quality review process, which is being conducted by their auditors, Crowe JHB Inc.
Ayo is also facing a winding-up application in the Western Cape High Court, brought by a minority shareholder, Howard Lowenthal. Lowenthal alleges poor management and shareholder depletion. Ayo has rejected these claims, stating they are unfounded and defamatory. The company is considering legal action against Lowenthal.
Additionally, Ayo recently settled with the Public Investment Corporation (PIC), agreeing to repay R619 million. This settlement followed controversy surrounding the PIC’s initial R4.3 billion investment in Ayo prior to its listing. The Mpati Commission found that the PIC had flouted governance procedures in approving the investment.
The winding-up application also alleges that the PIC settlement was prejudicial to other shareholders.Ayo has stated that it is focused on strengthening its investments and improving margins. The company is also working to maintain its relationship with the PIC.