Experts disagree on PIC investment
Evidence on day six of the case in which the Public Investment Corporation (PIC) is looking to dissolve and recoup its R4.3bn investment in AYO Technology Solutions (AYO) pitted the differences between two financial accounting experts on the deal.
The Star reports on the witness stand – for the second day running – was Professor Harvey Wainer, an expert on financial matters with a particular focus on valuations.
Wainer is appearing as an expert witness for the PIC and his mandate and approach to the share subscription agreement and the numbers involved came under the spotlight in his cross-examination by AYO lawyer, Advocate Nazeer Cassim SC.
Earlier in his evidence, which was led by PIC lawyer Advocate Vincent Maleka SC, Wainer had said that, in his view, the numbers presented by AYO in its pre-listing statement (PLS) were ‘unrealistic and fanciful’.
This was in contrast to the opinion of his opposite number on the AYO side, André Pieterse, who in his report on the deal, which the two experts had discussed at a meeting outside the court, classed the same data as ‘realistic, credible and probable’.
Under cross-examination by Cassim, Wainer was forced to concede that the mandates he and Pieterse had were not the same and that only certain matters of principle were discussed at their meeting before the case began.
Cassim had asked Wainer about his mandate on behalf of the PIC, with a view to understanding the context of his evidence.
Wainer said his mandate was to consider revenue growth as stated in the PLS, and the effect on the value of AYO and whether it was not realistic and proper.
The Star says when Cassim asked Wainer if he and Pieterse had debated Wainer’s criticism of Pieterse’s report, Wainer said they had not, but that had his opposite number raised it, he would have told him his thoughts.
Pressing his point home with an example, Cassim said: ‘But you didn’t say to him look, if you look at paragraphs 69 to 72, your report makes no sense at all? You didn’t say that?’
Wainer replied he had not.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
