The Public Investment Corp’s (PIC) commitment to following its rights in Efora Energy’s capital raise will add to the many questions about governance at the asset manager. Efora is raising R600m by issuing 1.2 billion new shares. The firm’s market cap stands at R170m. While recent corporate activity on the part of Efora has transformed it into a company with worthy assets in the fuel industry, the PIC’s 60.72% stake in the oil producer and retailer is one of those controversial investments for which the PIC is currently attracting unflattering headlines. At that level, the PIC’s stake makes it an operator of the asset, just as it is with others, such as cement producer AfriSam. The PIC has been struggling to put AfriSam on a firm, independent footing since acquiring it in a controversial 2006 deal. The situation is no different at Efora. It does not help that the PIC’s equity partner at AfriSam is the same Phembani that is the second-largest investor in Efora. The PIC invested in wh...

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