Oakbay Resources and Energy Ltd. said June 5 that River Group terminated its sponsorship, effective July 31, due to its revised assessment of association risk surrounding the company and its shareholders.
Oakbay is in the process of identifying and appointing a new sponsor.
The Gupta family, who are the majority owners of Oakbay, are alleged to have used their connections with South African President Jacob Zuma to secure government contracts.
The decision of River Group gives Oakbay 30 days starting July 31 to find a new sponsor. Under the rules of the Johannesburg Stock Exchange, a company without a sponsor or an entity that will help it apply the bourse's requirements may have their listing suspended.