JSE-accredited sponsor River Group has given Gupta-family owned Oakbay Resources and Energy notice it intends dropping its account.
“The reason for River Group’s termination of their services is due to their revised assessment of association risk surrounding the company and its shareholders‚” Oakbay said in Monday’s statement.
River Group’s termination of its contract with Oakbay also comes as journalists trawl through 87GB of e-mails dating back to 2012 which have brought to light the Gupta family’s corrupt dealings with government officials and state owned enterprise executives.
Oakbay said River Group would continue to act as its sponsor for a minimum of two months‚ until July 31.
Oakbay shares remained untraded at 2.22pm on Monday‚ with a wide spread between an offer to buy the shares at R5.80 each and an offer to sell at R30.