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Repurchase Of Ordinary Shares In Sasol Limited

Release Date: 01/06/2000 11:46:54      Code(s): SOL SOLD
SASOL LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1979/003231/06)
("SASOL")
REPURCHASE OF ORDINARY SHARES IN SASOL LIMITED
1. INTRODUCTION
A GENERAL AUTHORITY TO SASOL'S DIRECTORS, TO APPROVE THE ACQUISITION BY SASOL
OF ITS OWN SHARES, WAS GRANTED IN TERMS OF A SPECIAL RESOLUTION ("THE SPECIAL
RESOLUTION") PASSED BY THE MEMBERS AT SASOL'S ANNUAL GENERAL MEETING HELD ON 25
OCTOBER 1999. ON 20 APRIL 2000, SASOL'S DIRECTORS APPROVED THE REPURCHASE OF
SASOL'S SHARES IN ACCORDANCE WITH THE GENERAL AUTHORITY GRANTED ON 25 OCTOBER
1999.
THE SHARE REPURCHASE FORMS PART OF SASOL'S STRATEGY TO RESTRUCTURE ITS BALANCE
SHEET. THE SHARE REPURCHASE WILL RESULT IN REVISED GEARING, A LOWER WEIGHTED
AVERAGE COST OF CAPITAL AND IMPROVED EARNINGS PER SHARE AND RETURN ON EQUITY.
2. AUTHORISED REPURCHASE LIMITS
IN TERMS OF THE SPECIAL RESOLUTION:
(A) THE GENERAL AUTHORITY IS LIMITED TO A MAXIMUM OF 10% OF SASOL'S ISSUED
SHARE CAPITAL OF THE SHARES IN THE APPLICABLE CLASS;
(B) ANY REPURCHASE MAY NOT BE MADE AT A PRICE MORE THAN 5% ABOVE THE WEIGHTED
AVERAGE OF THE MARKET VALUE OF THE SHARES FOR THE FIVE BUSINESS DAYS
IMMEDIATELY PRECEDING THE DATE OF SUCH REPURCHASE.
A REPURCHASE PROGRAMME WAS SUBMITTED TO THE JOHANNESBURG STOCK EXCHANGE ("THE
JSE") ON 8 MAY 2000. A MAXIMUM OF 60 679 689 ORDINARY SHARES MAY BE REPURCHASED
IN TERMS OF THE PROGRAMME SUBMITTED TO THE JSE.
3. IMPLEMENTATION
THE PROGRAMME COMMENCED ON 9 MAY 2000 AND CONTINUED ON A DAY-TO-DAY BASIS AS
MARKET CONDITIONS ALLOWED. AS AT THE DATE OF THIS ANNOUNCEMENT A WHOLLY-OWNED
SASOL SUBSIDIARY HAS ACQUIRED, ON THE JSE, 18 200 000 SASOL ORDINARY SHARES
EQUIVALENT TO APPROXIMATELY 3% OF THE ISSUED SHARE CAPITAL OF SASOL FOR A TOTAL
CONSIDERATION OF R839 385 557. THE HIGHEST PRICE PAID WAS R46,82 PER ORDINARY
SHARE AND THE LOWEST WAS R44,02.
4. EXTENT OF AUTHORITY OUTSTANDING
THE EXTENT OF THE AUTHORITY OUTSTANDING IS 42 479 689 ORDINARY SHARES,
EQUIVALENT TO APPROXIMATELY 7% OF THE TOTAL ISSUED ORDINARY SHARE CAPITAL OF
SASOL.
5. SOURCE OF FUNDS
REPURCHASES TO DATE HAVE BEEN FUNDED FROM AVAILABLE CASH RESOURCES IN
ACCORDANCE WITH THE REPURCHASE PROGRAMME. FUTURE REPURCHASES WILL ALSO BE
FUNDED FROM AVAILABLE CASH RESOURCES.
6. OPINION OF THE DIRECTORS
HAVING CONSIDERED THE EFFECT OF THE REPURCHASE PROGRAMME, THE OPINION OF THE
DIRECTORS, IN TERMS OF THE COMPANIES ACT, 1973 (ACT 61 OF 1973), AS AMENDED,
AND THE REQUIREMENTS OF THE JSE ARE AS FOLLOWS:
6.1 SASOL WILL BE ABLE, IN THE ORDINARY COURSE OF BUSINESS, TO PAY ITS DEBTS
FOR A PERIOD OF 12 MONTHS FROM THE DATE OF THIS ANNOUNCEMENT.
6.2 AS AT 31 MAY 2000, THE CONSOLIDATED ASSETS OF SASOL AND ITS SUBSIDIARIES
ARE IN EXCESS OF THE CONSOLIDATED LIABILITIES, MEASURED IN ACCORDANCE WITH THE
ACCOUNTING POLICIES USED IN THE AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 25 JUNE 1999.
6.3 THE ORDINARY SHARE CAPITAL AND CONSOLIDATED RESERVES OF SASOL AND ITS
SUBSIDIARIES WILL BE ADEQUATE FOR A PERIOD OF 12 MONTHS FROM THE DATE OF THIS
ANNOUNCEMENT.
6.4 THE WORKING CAPITAL OF SASOL AND ITS SUBSIDIARIES WILL BE ADEQUATE FOR A
PERIOD OF 12 MONTHS FROM THE DATE OF THIS ANNOUNCEMENT.
EFFECT ON EARNINGS (FOR THE SIX MONTHS TO 25 DECEMBER 1999) AND NET ASSET VALUE
PER ORDINARY SHARE BEFORE AND AFTER THE REPURCHASE OF APPROXIMATELY 3% OF THE
ISSUED ORDINARY SHARE CAPITAL:
                                            BEFORE    AFTER
                                            (CENTS)   (CENTS)
EARNINGS PER SHARE                          244,6     245,4
HEADLINE EARNINGS PER SHARE                 269,6     271,3
NET ASSET VALUE PER SHARE                   2 661,3   2 595,6
FULLY DILUTED EARNINGS PER SHARE            228,4     228,8
FULLY DILUTED HEADLINE EARNINGS PER SHARE   251,4     252,4
ASSUMPTIONS
THE PRO FORMA FINANCIAL EFFECTS ARE CALCULATED AS AT 25 DECEMBER 1999, BEING
THE DATE OF THE LAST INTERIM PUBLISHED ACCOUNTS AND ASSUMING THAT THE
REPURCHASES TO DATE HAVE BEEN CARRIED OUT ON 26 JUNE 1999 AND WERE FINANCED BY
EXCESS CASH ON HAND ON WHICH INTEREST WAS RECEIVED AT A RATE OF 7,6% PER ANNUM
AFTER DEDUCTING TAX AT A RATE OF 30%.
FOR THE PURPOSES OF CALCULATING EARNINGS PER SHARE, HEADLINE EARNINGS PER SHARE
AND NET ASSET VALUE PER SHARE, THE NUMBER OF ORDINARY SHARES IN ISSUE HAS BEEN
REDUCED BY THE NUMBER OF ORDINARY SHARES REPURCHASED.
7. STOCK EXCHANGE LISTING
AS ALL OF THE SHARES HAVE BEEN REPURCHASED BY A WHOLLY-OWNED SUBSIDIARY OF
SASOL, NONE OF THE SHARES WILL BE CANCELLED NOR WILL THE JSE LISTING IN RESPECT
OF THOSE SHARES BE TERMINATED.
JOHANNESBURG
1 JUNE 2000
MERCHANT BANK
INVESTEC CORPORATE FINANCE
INVESTEC BANK LIMITED
(REGISTRATION NUMBER 1969/004763/06)
SPONSORING BROKER
INVESTEC SECURITIES LIMITED
MEMBER OF THE JOHANNESBURG STOCK EXCHANGE
REGISTRATION NO. 1972/008905/06



                                        
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