On 10 September 2020, Sasol informed the market that Sasol South Africa Limited (“SSA”), a major subsidiary of Sasol, had concluded a sale of business agreement with Air Liquide Large Industries South Africa under which SSA would dispose of its ASUs located in Secunda to Air Liquide subject to certain suspensive conditions.
Sasol yesterday announced that the Competition Tribunal approved the Transaction in their ruling following a hearing held on 8 June 2021. This concludes the final outstanding suspensive condition before implementation of the Transaction.
The Tribunal granted the approval subject to various conditions relating to future ownership of the ASUs by Air Liquide, including joint procurement of renewable power up to 900 megawatts and decarbonisation investments by Air Liquide.
Furthermore, ensuring no negative impact on employment, various commitments on Broad-Based Black Economic Empowerment and support for localisation and small, medium, micro and black owned enterprises.
All the suspensive conditions to the Transaction have now been fulfilled. In line with the terms of the Sale Agreement, the transaction will close on or before 10 business days from the competition tribunal approval date with the proceeds of R5,525 billion and EUR148,75 million (to be settled in US dollars) settled at closing.
The proceeds, net of tax obligations related to the Transaction, will be utilised within the Sasol Group to repay debt. Further detail related to the financial impact of the Transaction will be included in Sasol’s annual reporting for financial year 2021.