Sasol divests its 50% interest in North American operation
JOHANNESBURG – The board of directors of Sasol has announced 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 for USD404 million.
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.
As disclosed in the Sasol financial statements, 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.