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SASOL LIMITED - Disposal of Air Separation Units by Sasol South Africa Limited; Trading Statement Update and Further Cautionary

Release Date: 29/07/2020 07:05
Code(s): SOLBE1 SOL     PDF:  
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Disposal of Air Separation Units by Sasol South Africa Limited; Trading Statement Update and Further Cautionary

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 is pleased to announce that Sasol South Africa Limited (“SSA”), a Major
Subsidiary of Sasol, has signed an exclusive negotiation agreement with Air Liquide for
the sale of its sixteen air separation units located in Secunda to Air Liquide Large
Industries South Africa Proprietary Limited (“Air Liquide”). The proceeds will total
approximately R8,5 billion.

The air separation units, which have a capacity of up to 42 000 tons per day, provide
oxygen for Sasol’s fuels and chemical production processes in Secunda as well as
producing various other gases utilised at the site. Air Liquide will supply the gases to
SSA’s operations under a long-term gas supply agreement. It is anticipated that Air
Liquide’s expertise would allow, in coordination with Sasol, a targeted reduction in
greenhouse gas emissions (GHG) associated with the oxygen production over the
coming years, which will contribute towards the GHG reduction for the overall Secunda

Air Liquide has been present on the Secunda site since 1979, and already owns and
operates the seventeenth air separation unit, which was commissioned in January
2018. Air Liquide owning and operating the full air separation fleet is expected to
provide optimisation of management of the assets and energy efficiency benefits.

The transaction remains subject to further due diligence, finalisation of relevant
definitive agreements and associated internal and external approvals, including the
Competition Commission and the South African Reserve Bank. The parties aim to
negotiate final agreements by mid August, and a further announcement will be made at
that time. The transaction is currently expected to close within financial year 2021.

This transaction forms part of Sasol’s accelerated divestment programme as part of
Sasol’s comprehensive response plan announced on 17 March 2020.


Our accelerated asset disposal programme is impacting the completion of our year-end
processes. We anticipate the release of a trading statement update early in August

Sasol refers to the SENS announcements released on the Stock Exchange News
Service (“SENS”) on 17 March 2020, outlining a comprehensive response strategy
designed to mitigate the impact of a lower oil price and COVID-19. 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. A further SENS announcement was released
on 1 July 2020, updating investors on the progress regarding the asset disposal

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
disposal of the air separation units, the asset disposal programme and the potential
rights issue are made.

29 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: 29-07-2020 07:05:00
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