AYO to end provision of ICT services to Sasol at end of July by 'mutual consent'

AYO Technology Solutions says it will be ending its provision of ICT services to petrochemical company Sasol the end of July by mutual consent. 

"The settlement agreement was made on order of court on Tuesday, 4 February 2020," the JSE-listed ICT group said in an update to shareholders on Thursday, meaning that the dispute would not have to be referred to arbitration. 

AYO falls under Sekunjalo, the investment holding company of Cape Town businessman Iqbal Survé.

It previously said it had declared a dispute with Sasol, one of its largest clients, after the chemicals and energy company in 2019 gave AYO six months’ notice to terminate its ICT Master Services Agreement.

AYO said in Thursday, that according to the terms of the settlement agreement, it will continue to render ICT services to Sasol until 31 July 2020, whereafter the agreement will terminate.

Howard Plaatjes, Chief Executive Officer of AYO, said in a statement: “We are glad that we have reached a mutually agreeable arrangement with Sasol, which also leaves the way forward for Sasol and AYO to work together on other projects in the future.”

* This article has been updated to include comment by Plaatjes