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Johannesburg - Shares in Oakbay Resources & Energy [JSE:ORL] fell more than 10% on Monday after the Gupta family, which controls the firm's holding company, said at the weekend they will sell their South African businesses.
Oakbay Resources was down 10.02% at R18.85 before recovering to R20.95 by 14:16.
The scandal-hit family, which is being investigated by the anti-corruption watchdog of holding undue political sway over President Jacob Zuma and influencing government appointments, said on Saturday it would sell its South African businesses before the end of this year.
It will pull out of holding company Oakbay Investments, which includes coal mining firm Tegeta, Sahara Computers, JIC mining services, Clifftop safari lodge, a television news channel ANN7 and the New Age newspaper.
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"As a family, we now believe that the time is right for us to exit our shareholding of the South African businesses which we believe will benefit our existing employees, and lead to further growth in the businesses," they said in a statement on Saturday.
This follows a move in April by brothers Atul and Varun stepping down as non-executive chairperson and chief executive officer of Oakbay Resources. At the same time, President Jacob Zuma's son Duduzane Zuma resigned as a non-executive director of Shiva Uranium.
"Since our decision to step down from all executive and non-executive positions in all our South African business in April 2016, the local management team has grown our businesses from strength to strength, with turnover and profits showing good growth and more jobs created.”
The family said they were already in discussions with several prospective international buyers and would soon make further announcements.
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