Oak­bay faces trad­ing sus­pen­sion blow on JSE

The Star Early Edition - - COMPANIES - Siseko Njobeni

THE JSE is again on the verge of sus­pend­ing the trad­ing of Oak­bay Re­sources and En­ergy af­ter the com­pany ear­lier this month lost its JSE spon­sor, the River Group, Oak­bay told its share­hold­ers yes­ter­day.

The River Group, which de­scribes it­self as a suc­cess­ful JSE spon­sor, des­ig­nated ad­viser and in­ter­na­tional cor­po­rate fi­nance bou­tique, cut ties with Oak­bay, cit­ing as­so­ci­a­tion risk, sur­round­ing the com­pany and its share­hold­ers.

The JSE al­most sus­pended Oak­bay last year af­ter it strug­gled to se­cure a spon­sor fol­low­ing the res­ig­na­tion of its pre­vi­ous spon­sor, Sas­fin Bank, in June. The River Group came on board in Septem­ber last year.

Oak­bay re­cently suf­fered other res­ig­na­tions. Mark Pa­men­sky, an independent non-ex­ec­u­tive di­rec­tor and chair­man of the com­pany’s au­dit com­mit­tee, re­signed in May. Oak­bay’s trans­fer sec­re­tary, Ter­bium Fi­nan­cial Ser­vices, re­signed last week.

Oak­bay, which re­ceived no­tice the JSE was con­sid­er­ing a trad­ing sus­pen­sion, said it was con­sid­er­ing “var­i­ous al­ter­na­tives avail­able to it”.

JSE gen­eral man­ager of is­suer reg­u­la­tion An­dré Visser said yes­ter­day the ex­change had taken note of the res­ig­na­tion of Oak­bay’s spon­sor and trans­fer sec­re­tary.

“The ap­point­ment of th­ese par­ties is manda­tory in terms of the list­ings re­quire­ments. The JSE also noted the res­ig­na­tion of the independent non-ex­ec­u­tive di­rec­tor and au­dit com­mit­tee chair­man. In light of th­ese de­vel­op­ments, the JSE can con­firm it’s con­sid­er­ing pos­si­ble sus­pen­sion,” said Visser. Oak­bay’s shares re­mained at R5.80 yes­ter­day.

PHOTO: REUTERS

A logo of Oak­bay In­vest­ments at the en­trance to its of­fices in Sand­ton. The em­bat­tled com­pany is fac­ing a pos­si­ble sus­pen­sion from trad­ing on the JSE.

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