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Safripol and Sasol Dispute and Competition Complaint
KAP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1978/000181/06)
Share code: KAP
ISIN: ZAE000171963
Company Alpha Code: KAP
LEI code: 3789001F51BC0045FD42
('KAP' or 'the Company')
SAFRIPOL AND SASOL RAW MATERIAL SUPPLY DISPUTE AND COMPETITION COMPLAINT
Sasol South Africa Limited ("Sasol") supplies propylene and ethylene to the Company's subsidiary, Safripol
Proprietary Limited ("Safripol") in terms of evergreen supply agreements. Propylene and ethylene are the primary
raw materials utilised in Safripol's manufacturing of polypropylene and high-density polyethylene.
The Company has previously communicated the potential supply risk to Safripol from its exposure to Sasol as a
key supplier. However, given the contractual rights of the supply agreements, this risk is within our risk appetite.
The Company wishes, from a transparency perspective, to advise shareholders that Safripol and Sasol are
engaged in a dispute regarding the price of ethylene, which has recently progressed to independent arbitration.
In addition, the Company is in dispute with Sasol regarding the supply volume commitment in terms of the ethylene
supply agreement.
On 30 June 2025 Safripol lodged a complaint against Sasol at the Competition Commission and requested the
Commission to expeditiously investigate whether Sasol's conduct, as the monopoly ethylene supplier in South
Africa, is in contravention of the Competition Act. Safripol further applied to the Competition Tribunal for interim
relief under section 49C of the Competition Act for the preservation of the status quo in terms of the ethylene
supply agreement, pending the final determination of the complaint.
The Company and its legal advisors are confident of the Company's prospects in the various matters. In view of
the complex nature of these matters it is anticipated that the relevant resolution processes will be lengthy. The
Company will update shareholders of material developments when appropriate.
Stellenbosch
2 July 2025
Equity and Debt Sponsor
PSG Capital
Date: 02-07-2025 05:00:00
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