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SacOil resumes trading on JSE and London’s AIM

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14 Oct 2013

SacOil resumes trading on JSE and London’s AIM

OIL explorer SacOil on Monday resumed its trading on the JSE and London’s Alternative Investment Market (AIM), as new management pushes ahead with its turnaround plan.

Its share closed 1c, or 3.7%, lower at 26c with nearly 3-million shares worth R758,578 trading.

SacOil requested suspension of trading in its shares on May 31 when then CEO Robin Vela and two nonexecutive directors resigned, leaving Gontse Moseneke as the company’s sole director.

In a statement on Monday, it said that it has fulfilled all of the conditions that entailed reconstitution of its board of directors and has formed an audit-risk committee as part of the listing requirements on the JSE and AIM.

The board of directors has indicated that it was confident that the company has‚ and will have‚ the funds necessary to continue to trade as a going concern on the receipt of funds from the proposed rights offers.

SacOil’s board of directors is made up of high-profile names in South Africa, with former Reserve Bank governor Tito Mboweni as chairman‚ and former National Prosecuting Authority head Vusi Pikoli and former South African ambassador to Algeria and deputy National Intelligence Agency director-general Mzuvukile Maqetuka as nonexecutive directors.

They were joined by the Public Investment Corporation’s (PIC’s) nonexecutive director Ignatius Sehoole and Stephanus Muller from Amalgamated Appliances.

"The relisting in SacOil is the most important step in the recovery in the company," new CEO Roger Rees said on Monday.

On the cards is a recapitalisation programme of R800m, that includes converting the R330m debt owed to Nigerian infrastructure and manufacturing company Gairloch into equity‚ as well as conduct a R570m rights offer underwritten by the PIC. SacOil’s shareholders are set to put a vote on the recapitalisation programme in December, Mr Rees said.

In an interview with Business Day earlier in September, Mr Rees said the aim for the company was to have a strong debt-free balance sheet with which it could pursue the development of its existing assets, which was its main focus.

Source: Monde Maoto, BDLive