Ayo share price not too high, Matjila tells PIC inquiry

The share price for Ayo Technology Solutions was not overvalued.

JOHANNESBURG - The share price for Ayo Technology Solutions was not overvalued.

So says Dan Matjila who was the PIC's CEO for more than four years.

But the inquiry into the asset manager has heard how the PIC paid way too much for the deal with Ayo.

READ: PIC inquiry: Dan Matjila cries foul

It invested R4.3-billion into it.

The PIC paid over R40 per share where many have said it wasn't even worth R10 a share.

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Matjila says there were satisfactory reasons for the value.

"From my experience, I was also satisfied this valuation was reasonable," he said.

Matjila rubbished claims that the instruction to create liquidity to fund the Ayo subscription was irregular.

READ: Matjila's style 'misunderstood'

He made a comparison with companies being investigated by the state capture commission.

He says unlike those companies, the PIC doesn't keep stacks of money to fund its acquisitions. 

The transaction has been one of the most controversial deals the inquiry has been investigating.