SOL: Sasol - DIvestment Of Full Shareholding In Central Termica De Ressano Garcia S.A. (CTRG)

Rhea-AI Summary

Sasol has signed a Sale Securities Purchase Agreement with Azura Power Limited to divest its full shareholding in the CTRG gas-to-power plant in Mozambique for approximately USD 145 million. The transaction is pending regulatory approval and the waiver of pre-emption rights from Electricidade de Mocambique (EDM). This divestment aligns with Sasol’s asset strategy while the company remains committed to its upstream operations in Mozambique.

Positive

• Divestment of CTRG aligns with Sasol's asset divestment strategy.
• Transaction value of approximately USD 145 million enhances liquidity.

Negative

• Transaction subject to regulatory approval, posing execution risk.

JOHANNESBURG, Dec. 21, 2020 /PRNewswire/ -- Sasol is pleased to announce that a Sale Securities Purchase Agreement has been signed with Azura Power Limited for the divestment of the Company's full shareholding in CTRG, the gas-to-power plant located in Ressano Garcia, Mozambique.

The transaction is subject to a number of conditions precedent, which include regulatory approval and the waiver of pre-emption rights held by Electricidade de Mocambique (EDM), the Mozambican state-owned electricity company.

The consideration will be approximately USD145 million and covers the equity and other shareholder claims that Sasol holds in CTRG. This will be subject to any relevant closing adjustments, including those in relation to working capital.

This transaction is part of the Company's ongoing, strategy aligned, asset divestment programme. Sasol remains fully committed to upstream operations in Mozambique, which continue to be integral to Sasol's strategy.

For further information, please contact:

Sasol Investor Relations,
Tiffany Sydow, Investor Relations Officer
Telephone: +27 (0) 71 673 1929
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.

 

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SOURCE Sasol Limited

FAQ

What is the purpose of Sasol's divestment of CTRG?

Sasol aims to streamline its asset base through this divestment, aligning with its ongoing asset divestment strategy.

What is the value of the CTRG divestment by Sasol?

The divestment is valued at approximately USD 145 million.

What conditions must be met for the CTRG divestment to proceed?

The transaction is subject to regulatory approval and the waiver of pre-emption rights from Electricidade de Mocambique.

When was the Sale Securities Purchase Agreement for CTRG signed?

The agreement was signed on December 21, 2020.

What does the divestment of CTRG mean for Sasol's operations in Mozambique?

Sasol remains committed to its upstream operations in Mozambique despite the divestment.