SOL - Sasol - Sasol intends to retain and restructure its O&S business Release Date: 30/03/2007 11:02:15 Code(s): SOL
SOL - Sasol - Sasol intends to retain and restructure its O&S business
(Incorporated in South Africa)
(Registration number: 1979/003231/06)
ISIN Code: ZAE000006896
JSE Code: SOL
NYSE Code: SSL
SASOL INTENDS TO RETAIN AND RESTRUCTURE ITS O&S BUSINESS
Sasol today announced that it will retain its Olefins & Surfactants (O&S)
business and has terminated the planned divestiture process of the
business. The company has identified restructuring and other
opportunities to improve business performance. It intends, after
consultation with stakeholders, to implement these over the next three to
five years after which the options for the O&S business will be
reconsidered. Sasol believes that it is not in shareholders` interests to
pursue the divestiture at this stage.
"We are obviously disappointed not to have the outcome we desired.
However, we believe that it is in shareholders` interests to retain the
O&S business and improve its performance" says Sasol CE Pat Davies.
Sasol announced its intent to divest of the O&S business, subject to fair
value being obtained, on 1 August 2005. The main reason for this decision
was that the business did not adequately provide the integration benefits
which Sasol required.
Sasol, with its advisors, has explored all options to divest of the O&S
business during the past 18 months. "While there was considerable
interest by several parties, the process did not yield acceptable offers.
The offers received were unfortunately below fair value, and it would not
have been in our shareholders` interests to accept any of them," says
The O&S business will cease to be classified as being "held-for-sale" for
accounting purposes and will be shown as part of "continuing operations".
Sasol O&S was created out of Sasol`s acquisition of Condea from RWE-Dea
on 1 March 2001. The business, including certain existing Sasol assets in
South Africa, was subsequently named Sasol Olefins and Surfactants (O&S).
It includes Sasol`s global olefins and surfactants business, including
the South African detergent alcohol business, but excluding the South
African co-monomers business.
Forward-looking statements: In this announcement we make certain
statements that are not historical facts and relate to analyses and other
information based on forecasts of future results not yet determinable,
relating, amongst other things, to exchange rate fluctuations, volume
growth, increases in market share, total shareholder return and cost
reductions. These are forward-looking statements as defined in the United
States Private Securities Litigation Reform Act of 1995. Words such as
"believe", "anticipate", "intend", "seek", "will", "plan", "could",
"may", "endeavour" and "project" and similar expressions are intended to
identify such forward-looking statements, but are not the exclusive means
of identifying such statements. Forward-looking statements involve
inherent risks and uncertainties and, if one or more of these risks
materialise, or should underlying assumptions prove incorrect, actual
results may be very different from those anticipated. The factors that
could cause our actual results to differ materially from such forward-
looking statements are discussed more fully in our most recent annual
report under the Securities Exchange Act of 1934 on Form 20-F filed on 2
November 2006 and in other filings with the United States Securities and
Exchange Commission. Forward-looking statements apply only as of the date
on which they are made, and Sasol does not undertake any obligation to
update or revise any of them, whether as a result of new information,
future events or otherwise.
30 March 2007
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 30/03/2007 11:02:10 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department .