The Public Investment Corporation (PIC) and AYO Technology Solutions have reached a settlement over “positive misrepresentations” that led to a R4.3bn investment controversially being scored by AYO in December 2017.
The matter had been playing out in the Western Cape High Court.
The PIC was seeking to claw back the billions, plus interest, on behalf of the Government Employees Pension Fund. The trial began on Tuesday.
The settlement was made an order of court on Friday, the PIC said.
“The parties have sought to resolve the long-running litigation in a manner that best protects the interests of their stakeholders, in the circumstances, and with a view to giving the business of AYO a chance to create growth and value into the future,” it said.
TimesLIVE had previously reported that in its court papers, the PIC had said it was because of fraudulent “positive misrepresentations” by Ayo it had invested R4.3bn in the company in 2017.
Ayo, part of Iqbal Surve’s embattled Sekunjalo group, resisted the claim, saying the deal had been done lawfully and if set aside by the court it would mean “the inevitable and imminent demise of Ayo”.
In its particulars of claim, the PIC said that in conjunction with Ayo’s public listing on the JSE, it undertook a private placement: a private offer to selected potential investors to raise R4.3bn for Ayo. But here, the only real potential investor was the PIC, it said.
Meanwhile, TimesLIVE reported that on Friday, Independent Media staff, woke to the shocking news that they would only be paid 75% of their salaries, with “the balance of 25%” being “advised during the course of the coming week”.
The decision was communicated to employees via an email from company CEO Takudzwa Hove in the morning.
According to insiders who spoke to TimesLIVE anonymously, the decision was made after AYO, the parent company of African Equity Empowerment Investment (AEEI) — owned by Survé, who also owns Independent Media — and other companies under Sekunjalo Investment Holdings, had to repay the PIC.
TimesLIVE
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PIC and Ayo reach settlement in battle over 'positive misrepresentations' on R4.3bn investment
Image: 123RF/EVGENYI LASTOCHKIN
The Public Investment Corporation (PIC) and AYO Technology Solutions have reached a settlement over “positive misrepresentations” that led to a R4.3bn investment controversially being scored by AYO in December 2017.
The matter had been playing out in the Western Cape High Court.
The PIC was seeking to claw back the billions, plus interest, on behalf of the Government Employees Pension Fund. The trial began on Tuesday.
The settlement was made an order of court on Friday, the PIC said.
“The parties have sought to resolve the long-running litigation in a manner that best protects the interests of their stakeholders, in the circumstances, and with a view to giving the business of AYO a chance to create growth and value into the future,” it said.
TimesLIVE had previously reported that in its court papers, the PIC had said it was because of fraudulent “positive misrepresentations” by Ayo it had invested R4.3bn in the company in 2017.
Ayo, part of Iqbal Surve’s embattled Sekunjalo group, resisted the claim, saying the deal had been done lawfully and if set aside by the court it would mean “the inevitable and imminent demise of Ayo”.
In its particulars of claim, the PIC said that in conjunction with Ayo’s public listing on the JSE, it undertook a private placement: a private offer to selected potential investors to raise R4.3bn for Ayo. But here, the only real potential investor was the PIC, it said.
Meanwhile, TimesLIVE reported that on Friday, Independent Media staff, woke to the shocking news that they would only be paid 75% of their salaries, with “the balance of 25%” being “advised during the course of the coming week”.
The decision was communicated to employees via an email from company CEO Takudzwa Hove in the morning.
According to insiders who spoke to TimesLIVE anonymously, the decision was made after AYO, the parent company of African Equity Empowerment Investment (AEEI) — owned by Survé, who also owns Independent Media — and other companies under Sekunjalo Investment Holdings, had to repay the PIC.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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