Gupta’s Oakbay listing in jeopardy after fails to find sponsor

Oakbay Resources & Energy, the company owned by the Gupta family, has been unable to find a sponsor to replace Sasfin in the specified time allowed by the exchange, throwing its listing on the Johannesburg Stock Exchange into jeopardy.

Sasfin announced it would resign as Oakbay’s sponsor in April, a development effective June 1. This left the uranium and coal mining firm 30 days – until July 1 – to acquire a new sponsor in terms of JSE rules.

Around the same time as Sasfin resigned its account with Oakbay, citing strategic planning reasons, a number of banks including Absa and Nedbank, as well as auditor KPMG and Sasfin Capital, also terminated their accounts with Oakbay.

Oakbay said in a statement today that it had managed to secure a replacement auditor and that it had “… stabilised its transactional banking capabilities”.

“Notwithstanding the above, and the fact that the company has utilised its best endeavours since Sasfin’s resignation to find a replacement sponsor, the company has been unable to do so within 30 business days of the effective date of Sasfin’s resignation,” it said.

In terms of JSE regulations, a company cannot remain listed without a JSE-accredited sponsor unless the exchange decides to extend the period allowed to find a sponsor.

Oakbay, which had Duduzane Zuma, the son of South African president, Jacob Zuma, as a director, has been under pressure to meet compliance rules since parts of corporate South Africa turned its back on the company.

This followed an allegation by deputy finance minister, Mcebisi Jonas, in March that the Guptas had offered him the finance ministry before Zuma fired Jonas’ boss, Nhlanhla Nene, in December.

Since, then Oakbay has seen its principals resign in Varun Gupta (CEO) along with his uncle, Atul Gupta (chairman) whilst Duduzane Zuma resigned from the board amid what they termed “a sustained political attack on the company”.

The company had “… made significant progress in achieving its business objectives, especially those relating to its newly-acquired Brakfontein coal operation and the development of its Klerksdorp based uranium project; the prospects of which remain very promising,” said Oakbay.

It “.. continues to proactively and positively engage with the JSE with regard to the process of appointing a JSE accredited sponsor, and shareholders will be advised accordingly with regard to any further developments in this regard,” it said.