The Public Investment Corporation (PIC) has taken legal action against AYO Technology Solutions as the state asset manager looks to recoup the billions it invested in the company.

BusinessLIVE notes in December 2017, the PIC invested R4.3bn in AYO under the watch of former CEO Dan Matjila, acquiring a 29% stake in the process. The deal, allegedly signed without following due processes and allegedly done at inflated valuations, is under scrutiny by the Mpati Commission of Inquiry into the PIC.

The state asset manager, which has previously vowed to recover its investment, issued summons against AYO on Wednesday in the Western Cape High Court, confirmed Deon Botha, the PIC’s head of corporate affairs.

The PIC’s claim is based on ‘misrepresentation on the part of AYO when the transaction was concluded, and legality’, Botha said.

‘As relief, the PIC has tendered back the shares bought from AYO in return for repayment of the invested amount of R4.3bn.’

Meanwhile, as reported yesterday, AYO is to sue the PIC for damages totaling ‘billions of rands’.

The company’s chair Wallace Mgoqi said the board has taken this step ‘as it has had enough of the raft of allegations based on hearsay and incorrect facts that have been seeded to the market via a rampaging propaganda war delivered through much of the SA media.’

Comments by PIC officials have ‘severely damaged the reputation of AYO’, which has struggled to close deals as a result.

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