JOHANNESBURG, October 9, 2017 /PRNewswire/ --
Sasol shareholders are referred to the Company's announcement on
20 September 2017 (the "First Announcement") regarding Sasol's
broad-based black economic empowerment ownership transaction,
incorporating information relating to the termination of the Sasol
Inzalo black economic empowerment transaction ("Sasol Inzalo
transaction").
The Sasol Inzalo transaction was a landmark, broad-based black
economic empowerment initiative that received shareholder approval
in 2008. A significant amount of the funding to facilitate this
transaction was obtained through the issue of preference shares to
external banks to facilitate the acquisition of Sasol preferred
ordinary shares by Sasol Inzalo Groups Funding (Pty) Ltd and Sasol
Inzalo Public Funding (Pty) Ltd (collectively "the Inzalo
FundCos").
Under the terms approved in 2008, 25 547 081 Sasol
preferred ordinary shares are due to be re-designated to Sasol
ordinary shares during June and September
2018. This would result in dilution for existing ordinary
shareholders of approximately 4%. These shares would then need to
be sold in the market by the Inzalo FundCos in order to fund the
redemption of the preference shares and cumulative dividends. Based
on the recent trading range of Sasol's share price, however, this
would not be sufficient to satisfy these obligations and creates a
funding shortfall of between R2 billion and R3 billion. This
shortfall will be made good by Sasol in terms of a guarantee
granted in respect of a portion of the preference share funding at
the outset of the transaction.
In the First Announcement Sasol indicated that its preferred
funding option would be to undertake an accelerated book-build of
up to 43 million Sasol ordinary shares to enable the funding of the
minimum amount sufficient to repurchase the relevant Sasol
preferred ordinary shares and settle the relevant obligations and
associated costs of the Inzalo FundCos. The rationale for this
option was to achieve rapid resolution of Sasol and the Inzalo
FundCos' respective financing obligations with a structure designed
to help protect Sasol's investment grade credit rating with limited
incremental dilution for shareholders of approximately 1%
incremental dilution pursuant to the issue by Sasol of new ordinary
shares.
Following extensive engagement with shareholders, Sasol is now
undertaking to explore, in consultation with the external banks and
Inzalo FundCos, different funding options to settle the relevant
financing obligations. Sasol will therefore no longer pursue the
preferred funding option, as described in the First Announcement,
of issuing up to 43 million ordinary shares through an accelerated
book-build process. Sasol's intention is to mitigate the amount of
shareholder dilution whilst still maintaining Sasol's investment
grade credit rating. Sasol will communicate its final plan for
settling the Inzalo FundCos' debt in February 2018.
The terms of Sasol Khanyisa relating to Sasol Inzalo
participants, SOLBE1 shareholders and qualifying employees as set
out the First Announcement are in no way affected by this
announcement.
Sponsor: Deutsche Securities (SA) Proprietary Limited
Investor relations:
Cavan Hill, Senior Vice President:
Investor Relations
Telephone: +27(0)10-344-9280
Alex Anderson, Head of Group Media
Relations
Direct telephone: +27(0)10-344-6509; Mobile: +27(0)71-600-9605;
alex.anderson@sasol.com
Matebello Motloung, Senior Specialist: Media Relations
Direct telephone: +27(0)11-344-9256, Mobile: +27(0)83-773-9457
matebello.motloung@sasol.com
SOURCE Sasol Limited