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IDC faces R90m loss as Guptas’ Oakbay delists
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Suspension request followed failure to secure JSE sponsor, company shed 71% of market value in 2017 alone.

The Industrial Development Corporation (IDC), which converted R256m of the loan owed to it by Oakbay Resources & Energy into equity when the Gupta-owned company listed in November 2014, says Oakbay is delisting from the JSE, but it would ensure that the development finance institution’s rights are not prejudiced.

The IDC converted interest on its loan to Oakbay into shares at R9 a share. Now those shares cannot be converted into cash, and with the share price at R5.80, the IDC will have to book a loss of about R90m.

Oakbay, which earned Atul Gupta a spot on the 2016 Sunday Times Rich List with a paper fortune of R10.7bn based on the company’s market capitalisation, has applied for the voluntary suspension of trading in its shares from the JSE after failing to secure a sponsor.

Source: businesslive.co.za
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