Ayo Technology Solutions (AYO) on Friday said it is considering taking legal action for defamation against a minority shareholder, holding just 0.13% of the company’s shares, who has lodged a winding-up application.
“Shareholders are advised that AYO has received a notice of motion which has been lodged in the High Court of South Africa, Western Cape Division, Cape Town, from a minority shareholder with a shareholding of 0.13%, seeking to wind up AYO,” it said on the Stock Exchange News Service (SENS).
In a statement, AYO, which is a black-owned ICT investment holding group, said, "AYO is considering legal action against the applicant for defamation and damages arising from this unwarranted attack on the company’s reputation.“
The notice of motion states that the applicant in question is Howard Lowenthal, who is acting in his capacity as the executor of the estate of his late father Norman Dror Lowenthal, on the “unreasonable depreciation” of shares the deceased held in AYO.
AYO said in the spirit of transparency and to safeguard the integrity of the capital markets, AYO has elected to issue a voluntary announcement via SENS, adding that it was important to highlight that this action targets AYO directly and does not affect its underlying subsidiaries, whose operations remain unaffected and continue as normal.
AYO said, “AYO categorically rejects the claims made in the Notice of Motion, which it views as unfounded, opportunistic, and entirely devoid of merit. The application appears to be a deliberate attempt to harm AYO’s reputation, manipulate public perception, and extract undue financial benefit from the company.
“The application is rooted in a narrow and misapplied section of the Companies Act, relying on unsubstantiated allegations and speculative reasoning. Market performance, including share price fluctuations, is an inherent risk of investing in listed companies.”
AYO also notes that its share price performance has been influenced by external factors such as discriminatory practices, inaccurate media reporting, broader economic conditions, and legitimate market dynamics. This context further undermines the legitimacy of the shareholder’s claims.
AYO is confident that this application will fail, as it is “neither reasonable nor justified”.
AYO explained that it has engaged its legal advisers to oppose the application. The Board of directors of the company is confident in AYO's position to oppose the application and believes that it will successfully defend the matter in the appropriate legal forum, it said.
The Board further said it is carefully traversing the legal and operational implications of the application and will take all necessary steps, in consultation with its advisers, to safeguard the interests of the company, together with its stakeholders and shareholders.
“AYO remains steadfast in its commitment to its shareholders, employees, and stakeholders, and its operations will continue uninterrupted,” it said.
BUSINESS REPORT