IS IT GAME OVER FOR SACOIL?
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.