Latest news with #ListingsRequirements
IOL News
23-05-2025
- Business
- IOL News
AYO Technology shares surge 20% following Sekunjalo Investment Holdings' acquisition offer
Shares in technology group AYO Technology Solutions Limited (AYO) leapt 20% after Sekunjalo Investment Holdings (Sekunjalo) on Friday confirmed that it has made a firm offer to acquire all remaining ordinary shares in South Africa's largest black-owned and managed ICT investment group not already held by it or its related parties. Sekunjalo currently holds a 45% majority shareholding in AYO. Sekunjalo has also submitted a proposal for the voluntary delisting of AYO from the JSE. "Sekunjalo will acquire the Offer Shares, being a maximum of 155 331 790 shares, in respect of which valid acceptances are received prior to the closing date of the Offer, for a total maximum Offer Consideration of R80 772 531," AYO said. It said the Offer will be subject to the condition that the proposed delisting, pursuant to the voluntary delisting provisions of the Listings Requirements, is approved by at least 75% of shareholders present or represented by proxy at the General Meeting and the JSE. Sekunjalo said in a statement, "We hope shareholders will remain on this journey with us, but we also recognise that some may prefer to exit. This offer allows for both – providing liquidity to those who wish to sell and stability for those who believe in the future of AYO. "Sekunjalo firmly believes that transitioning AYO into a private company is a strategic and positive step that will unlock significant value and better position the company for long-term growth." The shares in AYO by midday Friday on the JSE surged 8 cents to 48 cents. Sekunjalo also said that it has a proven track record of investing in and supporting companies post-delisting, including Premier Fishing and Brands and African Equity Empowerment Investments. It said these, and others, have flourished outside the constraints of public markets."The same opportunity now exists for AYO," it added. The decision to propose delisting is underpinned by several factors, including the high cost of maintaining a listing, the limitations imposed by regulatory requirements on agile decision-making, and the persistent misrepresentation of AYO's history in the public domain, which has hampered its ability to grow and contribute meaningfully to South Africa's digital economy and capital markets transformation, Sekunjalo said. Sekunjalo has been a long-term investor in AYO for more than two decades, dating back to its original investments through Sekunjalo Healthcare and later HST. The Group remains deeply committed to technology as a lever for inclusive economic empowerment and continental growth. AYO, which maintains a diversified technology investment portfolio with strong underlying subsidiaries, stands to benefit from the ability to pursue its strategy without the volatility and distractions of public listing status. Sekunjalo strongly believes that AYO's executive leadership, who have already stabilised operations and streamlined cost centres, will be better placed to drive innovation and expansion in a private structure. Sekunjalo said, "Delisting will allow the company to focus its energy on execution and transformation, rather than compliance and litigation. This is about putting AYO and its subsidiaries in a position to thrive - here at home and across the continent." AYO said, in accordance with the requirements of the takeover regulations, it has constituted an independent board comprising Rosemary Mosia, Sello Rasethaba, and Adv Ngoako Ramathlodi (Independent Board) for purposes of evaluating the terms and conditions of the offer. BUSINESS REPORT
The Citizen
06-05-2025
- Business
- The Citizen
Here's why chicken prices might increase soon
If the chicken producer's predictions come true, consumers might be subjected to higher chicken prices to recoup losses. South Africa's largest chicken producer, Astral, says it will likely report poor results for the six months ending 31 March 2025, due to lower chicken prices and higher costs hurting its business and profits. Astral's troubles started in 2023, when the country was faced with load shedding and the bird flu outbreak. However, this changed in 2024, as the company recovered and recorded significant profit. If the chicken producer's predictions come true, consumers might be subjected to higher chicken prices to recoup the loss. ALSO READ: Here is why egg prices are high and could increase in future Astral first warning Astral issued its first warning early this year, citing price deflation in chicken sales has placed severe pressure on its net margins. This was attributed to constrained consumer environment and extensive retail promotional activity on frozen chicken, that placed pressure on selling prices. 'Together with an increase in poultry feed input costs following the drought of 2024 and higher local maize prices, earnings for the first half of 2025 will be lower than a strong set of results for the period ended 31 March 2024,' read the chicken producer's voluntarily trading update released on 24 March 2025. Astral faces challenging times In its Sens announcement released on Monday, Astral told shareholders that it predicts its earnings per share ('EPS') is to decrease between 55% and 45% compared to the six months ended 31 March 2024. EPS is a simple way to measure how much money a company makes for each share of its stock. Its headline earnings per share ('HEPS') are expected to decrease between 60% and 50% compared to the prior comparable period. HEPS removes unusual or one-time items from the profit to show the company's core earnings. The chicken producer has done this in line with the terms of the Listings Requirements of the JSE Limited. 'Companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on will differ by at least 20% from those of the previous corresponding period.' ALSO READ: Egg prices increasing globally due to US shortage — Should SA take advantage and export? Results to be released Astral has attributed the above decrease in earnings to the factors they announced earlier in the year. 'The financial information contained in this announcement has not been reviewed and reported on by the Group's auditors.' The audited results are expected to be released on 19 May 2025. In their earlier voluntary trading update, the producer said they expect EPS and HEPS for the first half of 2025 to decrease by more than 55% and 60%, respectively. Cybersecurity breach The chicken producer lost R20 million in profits earlier this year due to a cybersecurity breach. The cybersecurity incident negatively impacted the poultry division by causing processing and customer delivery downtime. However, there was no confidential information or sensitive data of customers, suppliers or individual stakeholders that was compromised. NOW READ: Here are the economic and social impacts of bird flu
