AEEI shareholders vote in favour of delisting

AEEI votes to delist off the JSE. Photo: Armand Hough/ Independent Newspapers

AEEI votes to delist off the JSE. Photo: Armand Hough/ Independent Newspapers

Published Mar 1, 2024


SHAREHOLDERS of African Equity Empowerment Investments (AEEI) voted overwhelmingly in favour of a scheme of arrangement and for the company to be delisted from the JSE.

With more than two-decades of being listed on the JSE, the firm which listed on May 3, 1999 and is a majority black-owned and black-controlled investment holding company, has finally called it a day.

At Wednesday’s shareholder meeting, 99.63% of shareholders voted in favour of the resolution to delist. The scheme of arrangement involves shares held by shareholders being repurchased for R1.15 per share cash.

AEEI has said previously its decision to delist was prompted by the unbundling of its investment in AYO Technology Solutions and the sale of a 30% stake in British Telecom South Africa by AEEI subsidiary Kilomix, and also a strained relationship with the JSE.

“Further, with the current operating environment and illiquidity of the shares, along with the strained relationship between the JSE and Sekunjalo companies listed on the JSE, the board has determined that the remaining portfolio no longer warrants the costs and administrative burden associated with a listing relative to any benefits a publicly traded entity on the JSE can bring,” AEEI told its shareholders last October.

The JSE saw 22 delistings last year and only three new listings, as the delisting trend continued. Rising delistings are a global phenomena, but the impact is worse on the JSE given its smaller market. Reasons include poor valuations, growth of private equity, mergers and acquisitions and unhappiness about the costs associated with being listed- elevating investor concerns about the investment outlook for South African equities.