BLOODY NOSE FOR THE IDC
ROB ROSE: How the Guptas hoodwinked the IDC
The state funder, which is meant to lend to companies to create jobs and spur entrepreneurship, will take a R90m hit on its Oakbay investment
Oakbay’s retreat from the JSE, having listed only three years ago with bold uranium plans, may be the first tangible sign of the unravelling of the shadow state. But it also puts the state-owned Industrial Development Corp (IDC) in an embarrassing spot. Oakbay, owned by the Gupta family, said two weeks ago its listing would be "temporarily suspended" after the resignations of its sponsor, River Group, its transfer secretary Terbium and independent director Mark Pamensky. What Oakbay didn’t initially bother telling shareholders, of course, was that it actually planned to delist entirely from the JSE — something the IDC, its 3.5% shareholder, first revealed. Speaking to the Financial Mail this week, IDC executive Gert Gouws admitted it "isn’t ideal" that his institution’s R250m investment in Oakbay will now be in an unlisted company, which it can’t easily trade out of. "We’re now in a complex situation. The fact it will be unlisted doesn’t mean it has zero value. The underlying asset ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.