To view the PDF file, sign up for a MySharenet subscription.

SASOL LIMITED - Progress with Asset Sales and Further Cautionary Announcement

Release Date: 01/07/2020 15:50
Code(s): SOLBE1 SOL     PDF:  
Wrap Text
Progress with Asset Sales and Further Cautionary Announcement

Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes:       JSE: SOL             NYSE: SSL
Sasol Ordinary ISIN codes:        ZAE000006896         US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
(“Sasol” or “Company”)



Sasol and Chevron have signed an agreement that will result in Sasol selling its indirect
beneficial interest in the Escravos GTL (EGTL) plant in Nigeria to Chevron. The
transaction will release Sasol from associated company guarantees and other
obligations. Sasol will continue to support Chevron in the performance of the EGTL
plant through ongoing catalyst supply, technology and technical support.

The transaction has an agreed economic effective date of 1 September 2019.


In October 2019 Sasol announced its intention to form a new explosives partnership with
Enaex S.A. Sasol has concluded the transaction to sell a 51% share in the business to
Enaex, and on 1 July 2020, Enaex Africa in association with Sasol, will officially start
operating in South Africa and on the African Continent.

These transactions form part of Sasol’s accelerated divestment programme to
streamline our portfolio by focusing on core assets, which will enable Sasol’s
repositioning over the following 24 months.


Divestment processes are well underway with respect to Sasol’s equity interests in the
Republic of Mozambique Pipeline Investment Company (Pty) Ltd (ROMPCO) pipeline
and the Central Termica de Ressano Garcia (CTRG) gas-fired power plant in
Mozambique, and partnering discussions in relation to the Base Chemicals assets in the
USA are far advanced. Further updates on these and other disposals will be provided
as and when appropriate.


Sasol refers to the cautionary announcements released on the Stock Exchange News
Service on 17 March 2020 and 31 March 2020, outlining a comprehensive response
strategy designed to mitigate the impact of COVID-19 and a lower oil price. The strategy
includes a cash conservation programme, an accelerated and expanded asset disposal
programme, as well as a potential rights issue of up to US$2 billion which remains
subject to the progress of other initiatives.

Sasol shareholders are advised that implementation of the response strategy is
underway, the outcome of which may have a material effect on the price of the
Company’s securities. Accordingly, shareholders are advised to continue exercising
caution when dealing in the Company’s securities until full announcements on the asset
disposal programme and the potential rights issue are made.

1 July 2020

Sponsor: Merrill Lynch South Africa Proprietary Limited

Disclaimer - Forward-looking statements
Sasol may, in this document, make certain statements that are not historical facts and
relate to analyses and other information which are based on forecasts of future results
and estimates of amounts not yet determinable. These statements may also relate to
our future prospects, expectations, developments and business strategies. Examples of
such forward-looking statements include, but are not limited to, the impact of the novel
coronavirus (COVID-19) pandemic on Sasol’s business, results of operations, financial
condition and liquidity and statements regarding the effectiveness of any actions taken
by Sasol to address or limit any impact of COVID-19 on its business; statements
regarding exchange rate fluctuations, changing crude oil prices , volume growth,
increases in market share, total shareholder return, executing our growth projects
(including LCCP), oil and gas reserves, cost reductions, our climate change strategy
and business performance outlook. Words such as “believe”, “anticipate”, “expect”,
“intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and
“project” and similar expressions are intended to identify such forward-looking
statements, but are not the exclusive means of identifying such statements. By their
very nature, forward-looking statements involve inherent risks and uncertainties, both
general and specific, and there are risks that the predictions, forecasts, projections and
other forward-looking statements will not be achieved. If one or more of these risks
materialise, or should underlying assumptions prove incorrect, our actual results may
differ materially from those anticipated. You should understand that a number of
important factors could cause actual results to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in such forward-looking
statements. These factors and others are discussed more fully in our most recent
annual report on Form 20-F filed on 28 October 2019 and in other filings with the United
States Securities and Exchange Commission. The list of factors discussed therein is not
exhaustive; when relying on forward-looking statements to make investment decisions,
you should carefully consider both these factors and other uncertainties and events.
Forward-looking statements apply only as of the date on which they are made, and we
do not undertake any obligation to update or revise any of them, whether as a result of
new information, future events or otherwise.

Date: 01-07-2020 03:50:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story