Finweek English Edition - - INVESTMENT -

At a gen­eral meet­ing held on 30 May, the key vote was about con­vert­ing a $17.6m loan into shares in SacOil. The day be­fore, the board sent out a SENS spell­ing out the con­se­quences of a no vote and that’s just what they got – a no vote. The im­me­di­ate ef­fect was the res­ig­na­tion of the ma­jor­ity of the board, in­clud­ing Robin Vela, the CEO, and the re­quest from di­rec­tors to sus­pend the share. The res­ig­na­tions make sense, the di­rec­tors had pushed for the debt con­ver­sion and if share­hold­ers dis­agree, then there is no meet­ing of minds. But now what? Tito Mboweni is the re­cently in­stalled chair­man of the board, and the com­pany is likely to start trad­ing again on the JSE – but the longer-term fu­ture for SacOil re­mains very bleak.

SacOil Hold­ings

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