IDC orders Oakbay to pay back R293m over share price manipulation

The IDC asserts that various misrepresentations and breaches of warranties were committed by the Oakbay Group.

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JOHANNESBURG - The Industrial Development Corporation (IDC) says it's taking the necessary legal steps against Oakbay Resources after allegations of share price manipulation.

On Thursday, Minister of Economic Development Ebrahim Patel tabled a written reply in the National Assembly.

He's explained that following legal advice, the IDC has now rescinded the restructuring agreement between itself, Oakbay Resources and other entities in the Oakbay Group.

The IDC asserts that various misrepresentations and breaches of warranties were committed by the Oakbay Group.

The corporation has, therefore, tendered the return of its shares in Oakbay Resources, and has demanded repayment of the outstanding capital and interest due to it, totalling approximately R293 million.

Minister Patel says the IDC agreed to lend the Oakbay Group R250 million in 2010 and that this was restructured in 2014 after which Oakbay listed on the JSE.

He says in June, it was reported that a Singapore entity bought Oakbay shares just before the company’s listing, using money lent to them by the Gupta family.

Patel says after an investigation by Advocate Geoff Budlender the IDC has now cancelled its agreement with Oakbay.

The IDC has demanded that the company repay by Thursday outstanding capital and interest owed to it, failing which the IDC will initiate proceedings to recover the money “using all available legal means at its disposal”.

Read the full statement below.

Oakbay Press Release (1) by Primedia Broadcasting on Scribd