Sasol concludes R1,45 billion Tshwarisano BEE deal Release Date: 30/06/2006 09:51:03 Code(s): SOL
Sasol concludes R1,45 billion Tshwarisano BEE deal
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
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Sasol concludes R1,45 billion Tshwarisano BEE deal
Sasol yesterday announced that the R1,45 billion Tshwarisano broad based black
economic empowerment transaction has been successfully concluded.
In terms of the agreement, Tshwarisano has acquired a 25% shareholding in
Sasol"s liquid fuels business housed in Sasol Oil (Pty) Limited.
Tshwarisano, which means "pulling together" in Sesotho, comprises many
historically disadvantaged groups around the country. Its chief promoters are Dr
Penuell Maduna, Ms Hixonia Nyasulu and Mr Reuel Khoza.
"We are particularly pleased about the broad composition profile of Tshwarisano.
The direct beneficiaries of Tshwarisano number many hundreds of thousands of
historically disadvantaged South Africans. More than 50% are women. The indirect
beneficiaries number an estimated three million people," says Tshwarisano
chairman Dr Penuell Maduna. He adds that beneficiaries also include the youth,
the disabled and rural communities.
Sasol is providing considerable facilitation and support for Tshwarisano"s
financing requirements, which amount to about R1,1 billion. Sasol has provided
guarantees for this debt and has agreed not to recover guarantee fees, all of
which will significantly lower Tshwarisano"s cost of borrowing. In addition,
Sasol is also establishing and funding trusts within Tshwarisano for the benefit
of the under-privileged.
"These initiatives are aimed at reducing financing costs and improving the long-
term business benefits that will accrue to Tshwarisano"s broad base of
empowerment shareholders," says Sasol CE Pat Davies, adding that for Sasol
transformation in South Africa is a strategic, business and moral imperative.
"We aspire to advancing our empowerment initiatives in ways that are
sustainable, credible and of benefit to the Sasol group, all our stakeholders,
and the country as a whole," he adds.
Sasol planned to incorporate Tshwarisano into the envisaged Uhambo Oil, a
proposed joint venture company between Sasol Limited and Petronas International
Corporation Limited, which was turned down by the Competition Tribunal at the
end of February 2006. The intention from the start, however, was that if this
Uhambo merged company was disallowed, Tshwarisano would become a 25% shareholder
in Sasol"s liquid fuels business.
The new Sasol Oil (Pty) Ltd board will comprise 12 directors - three directors
from Tshwarisano , six directors from Sasol and three executive directors from
Sasol Oil. Their names will be announced as soon as the board is properly
"Sasol Limited and Tshwarisano have entered into a landmark BEE transaction that
has been significantly facilitated by Sasol Limited regarding pricing and the
financing of costs that will allow real vesting of value to its BEE partners,"
says Philip Reynolds of Nedbank Capital Corporate Finance, joint lead adviser
and arranger to Tshwarisano.
"The transaction incorporates a substantial, boadbased BEE element with women,
rural participants and credible business partners. This sets a new benchmark for
BEE transformation in South Africa, as envisaged by the Codes of Good Practise
on Broad Based Black Economic Empowerment," he adds.
"The Tshwarisano transaction represents the largest BEE transaction in the
liquid fuels industry and serves as a model for the structuring of sustainable
and value creating empowerment transactions. Both Sasol and Tshwarisano have not
only been responsive to prevailing BEE and and transformation requirements but
have gone further to position Sasol Oil as a platform for growth which will
benefit all its stakeholders," says Fradreck Shoko of JPMorgan Chase Bank, joint
lead adviser and arranger to Tshwarisano.
Says David Munro, Standard Bank Deputy Chief Executive at Corporate and
Investment Banking: "This landmark R1,45 billion deal has provided Standard Bank
with the opportunity to be involved in and to make a real difference to
furthering broad-based black economic empowerment in South Africa. We are
delighted to partner Sasol in this critical deal"
Munro said that an important aspect of this transaction is that Standard Bank is
the sole provider of domestic funding of just under R1,3 billion, which has
allowed it the flexibility to provide a highly customised solution.
30 June 2006
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
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Date: 30/06/2006 09:51:11 AM Supplied by www.sharenet.co.za
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