Le Lézard
Classified in: Oil industry, Business, Covid-19 virus
Subjects: TNM, ACC

Divestment by Sasol Chemicals North America LLC of its 50% Equity Interest in Gemini HDPE LLC


JOHANNESBURG, Nov. 24, 2020 /PRNewswire/ -- The board of directors of Sasol is pleased to announce that Sasol Chemicals North America LLC ("SCNA"), a wholly owned subsidiary of Sasol, has agreed principle terms with INEOS Gemini HDPE Holding Company LLC ("INEOS") and a new entity to be formed by INEOS ("Newco") to sell its 50% membership interest in Gemini HDPE LLC ("Gemini"") to Newco (the "Sale")  for USD404 million (subject to adjustment for cash, debt, working capital and other items). Gemini produces and sells bimodal high-density polyethylene based in La Porte, Texas, United States of America.

The Sale represents a further step in achieving Sasol's strategic and financial objectives by accelerating the focus on specialty chemicals and reducing net debt. Proceeds from the transaction will be used by Sasol to repay near-term debt obligations.

Concurrent with the closing, the Company will have completed the restructuring of its existing debt facilities and the security package in respect thereof, resulting in Sasol and its subsidiaries being released from any existing security being provided in relation to Gemini (the "Refinancing").

The representations and warranties being given by SCNA are general corporate representations and warranties.

As disclosed in the Sasol financial statements, prepared in accordance with IFRS and audited by the Company's auditors, PricewaterhouseCoopers Inc., the value of the net assets relevant to the sale is USD 176 million (approximately R3 billion) as at 30 June 2020, which is net of the debt facilities associated with the interest. The loss attributable to the net assets was USD 18 million (approximately R290 million) for the year ended 30 June 2020.

The Sale between SCNA, INEOS and Newco will only be effective upon restructuring of the existing debt facilities and the Company's security package in respect thereof. Closing is anticipated to occur by 31 December 2020. 

The Sale is classified as a Category 2 transaction in terms of the Listing Requirements of the JSE.

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 24 August 2020 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.

 

SOURCE Sasol Limited


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News published on 24 november 2020 at 00:46 and distributed by: