IT company seeks solution to Sasol matter
In a SENS announcement yesterday following Sasol’s media statement that it had terminated the ICT Master Services Agreement with AYO, the company said it would clarify some matters that had not been put in the public domain with the termination announcement.
The group had undertaken last year to inform its shareholders in its reviewed results for the year ended August 31, 2019, released on SENS on December 20, that a significant customer gave AYO six months’ notice, purporting to terminate the agreement, and AYO had disputed the right to cancel and had invoked arbitration provisions under the agreement.
AYO said the contractual provision provides for an internal mechanism for resolving the dispute, failing which the dispute must go to arbitration.
“AYO committed itself to this process. However, on December 13, 2019, Sasol issued urgent proceedings out of the Western Cape High Court, seeking certain interim relief against AYO, pending the arbitration. AYO opposes the High Court application on procedural and substantive grounds,” it said.
Source: iol.co.za