JOHANNESBURG, July 29, 2020 /PRNewswire/ -- 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 site.
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.
RELEASE OF TRADING STATEMENT UPDATE
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
2020.
FURTHER CAUTIONARY ANNOUNCEMENT
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 programme.
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.
For further information, please contact:
Sasol Investor Relations,
Feroza Syed, Chief Investor
Relations Officer
Direct telephone: +27-(0)-82-557-7740
investor.relations@sasol.com
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.
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SOURCE Sasol Limited