SOL: Sasol - Successful Completion of the Divestment of Sasol's 50% Equity Interest in Gemini HDPE LLC

Rhea-AI Summary

Sasol has successfully completed the divestment of its 50% interest in the Gemini high-density polyethylene joint ventures to INEOS Gemini HDPE LLC on December 31, 2020. The transaction was valued at US$404 million, satisfied through cash and debt release. This divestment allows Sasol to repay near-term debt obligations, significantly enhancing its financial position. The restructuring has released Sasol and its subsidiaries from further security obligations, streamlining their financial commitments.

Positive

• Successfully divested 50% interest in Gemini joint ventures for US$404 million.
• Cash proceeds from the transaction will be utilized to repay near-term debt obligations.
• Successful restructuring of debt facilities, releasing further security obligations.

Negative

• None.

JOHANNESBURG, Jan. 4, 2021 /PRNewswire/ -- Sasol shareholders are referred to the Company's Stock Exchange News Service announcement dated 24 November 2020, in relation to the divestment of its 50% interest in the Gemini high-density polyethylene joint ventures to INEOS Gemini HDPE LLC (the "Divestment").

Sasol is pleased to announce that the Divestment successfully closed on 31 December 2020.

The consideration of US$404 million was satisfied through a combination of cash and release from debt obligations. The relevant debt facilities and security package have now been successfully restructured, releasing Sasol and its subsidiaries from any obligation to provide further security. The cash proceeds from the transaction were received on 31 December 2020, and will be used by Sasol to repay near-term debt obligations.

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 significance of Sasol's divestment of its Gemini HDPE joint ventures?

The divestment of Sasol's 50% interest in the Gemini HDPE joint ventures allows the company to strengthen its financial position by utilizing the US$404 million proceeds to repay near-term debt obligations.

When did Sasol complete the divestment of its Gemini HDPE joint ventures?

Sasol completed the divestment on December 31, 2020.

How much did Sasol receive from the divestment of its Gemini joint venture?

Sasol received US$404 million from the divestment.

What will Sasol do with the cash proceeds from the Gemini divestment?

The cash proceeds will be used by Sasol to repay near-term debt obligations.

What impact does the divestment have on Sasol's debt obligations?

The divestment allowed for the restructuring of Sasol's debt facilities, releasing the company from additional security obligations.