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SASOL LIMITED - Divestment by Sasol South Africa Limited of a 30% Equity Interest in ROMPCO

Release Date: 29/06/2022 11:44
Code(s): SOLBE1 SOL     PDF:  
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Divestment by Sasol South Africa Limited of a 30% Equity Interest in ROMPCO

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


On 27 June 2021, iGAS, a subsidiary of CEF SOC Limited (CEF), together with Companhia
Mocambiçana de Gasoduto (CMG), a subsidiary of Empresa Nacional de Hidrocarbonetos, EP
(ENH), announced that they had exercised their pre-emptive rights to acquire a 30% equity
interest in the ROMPCO pipeline (“the Transaction”).

iGAS’ and CMG’s pre-emptive rights were exercised after Sasol announced on 14 May 2021 that
SSA, a major subsidiary of Sasol, had concluded a sale and purchase agreement in terms of
which SSA had agreed to sell a 30% equity interest (Sale Shares) in ROMPCO to an acquisition
vehicle beneficially owned by a consortium, comprising Reatile Group Proprietary Limited and the
IDEAS Fund managed by African Infrastructure Investment Managers Proprietary Limited.

Following the fulfilment of all conditions precedent, the Transaction is now complete.

The Sale Shares have been sold for a consideration comprising an initial amount of R4,1 billion,
subject to certain adjustments, and a deferred payment of up to R1 billion, which is payable if
certain agreed milestones are achieved by 30 June 2024.

SSA retains a 20% shareholding in ROMPCO and Sasol will continue to operate and maintain
the pipeline in terms of the commercial agreement between Sasol and ROMPCO, which is
independent of the Transaction. Sasol’s agreements with ROMPCO to transport gas to Secunda
are unaffected by the Transaction and the tariffs remain as per the said agreements, which were
approved by the National Energy Regulator of South Africa (NERSA).

This Transaction marks the completion of the major transactions in Sasol’s accelerated, strategy-
aligned, asset divestment programme announced in March 2020. Sasol remains fully committed
to its integrated natural gas business in Southern Africa, which is integral to Sasol’s long-term

29 June 2022

Investment Bank, Corporate Advisor and Transaction Sponsor:
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Legal advisor:
Webber Wentzel

JSE Sponsor: Merrill Lynch South Africa Proprietary Limited t/a BofA Securities

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, and measures taken in response, on Sasol’s business, results of operations, markets,
employees, financial condition and liquidity; the effectiveness of any actions taken by Sasol to
address or limit any impact of COVID-19 on its business; the capital cost of our projects and the
timing of project milestones; our ability to obtain financing to meet the funding requirements of our
capital investment programme, as well as to fund our ongoing business activities and to pay
dividends; statements regarding our future results of operations and financial condition, and
regarding future economic performance including cost containment, cash conservation
programmes and business optimisation initiatives; recent and proposed accounting
pronouncements and their impact on our future results of operations and financial condition; our
business strategy, performance outlook, plans, objectives or goals; statements regarding future
competition, volume growth and changes in market share in the industries and markets for our
products; our existing or anticipated investments, acquisitions of new businesses or the disposal
of existing businesses, including estimates or projection of internal rates of return and future
profitability; our estimated oil, gas and coal reserves; the probable future outcome of litigation,
legislative, regulatory and fiscal developments, including statements regarding our ability to
comply with future laws and regulations; future fluctuations in refining margins and crude oil,
natural gas and petroleum and chemical product prices; the demand, pricing and cyclicality of oil,
gas and petrochemical product prices; changes in the fuel and gas pricing mechanisms in South
Africa and their effects on prices, our operating results and profitability; statements regarding
future fluctuations in exchange and interest rates and changes in credit ratings; total shareholder
return; our current or future products and anticipated customer demand for these products;
assumptions relating to macroeconomics; climate change impacts and our climate change
strategies, our development of sustainability within our Energy and Chemicals Businesses, our
energy efficiency improvement, carbon and GHG emission reduction targets, our net zero carbon
emissions ambition and future low-carbon initiatives, including relating to green hydrogen and
sustainable aviation fuel; our estimated carbon tax liability; cyber security; and statements of
assumptions underlying such statements. Words such as “believe”, “anticipate”, “expect”, “intend",
“seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar
expressions are intended to identify 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 22 September
2021 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 foregoing factors and other uncertainties and
events, and you should not place undue reliance on forward-looking statements. 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: 29-06-2022 11:44:00
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