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The JSE said on Friday it had informed Oakbay Resources & Energy that it was considering the suspension of its listing over the company’s failure to appoint a sponsor to replace Sasfin Capital.
Sasfin Capital gave notice in April that it would terminate its engagement as sponsor of the controversial Gupta family business as of June 1. It is a listing requirement that a new sponsor be appointed within 30 days of a sponsor’s termination. A statement from the JSE on Friday said the "grant period" for appointment of a new sponsor had expired on July 14.
In a statement issued a minute later on the JSE’s news service, Oakbay confirmed that, despite its "best endeavours", it had failed to find a replacement for Sasfin.
The statement noted that Sasfin "had resigned for reasons relating to their stated decision to align the strategic objectives of Sasfin’s corporate finance division more closely with that of the broader Sasfin group".
It is well known, however, that the decision was made public at a time when a number of other South African businesses had publicly cut ties with the Gupta-owned business over allegations of State capture.
Friday’s statement from Oakbay pointed out that subsequent to Sasfin’s resignation it had appointed a new JSE-accredited auditor and published reviewed financial results for the year to February 29.
The statement added: "Furthermore, the company has largely stabilised its transactional banking capabilities and 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."
Oakbay said it was engaging "proactively and positively" with the JSE with regard to appointing a sponsor and would inform shareholders of any further developments.