THE COMPETITION Tribunal has given Sasol the go-ahead to sell its 16 air separation units in Secunda, Mpumalanga, to Air Liquide Large Industries South Africa, paving the way for the conclusion of the R5.525 billion transaction.
Approval from the Competition Tribunal was the final hurdle for the transaction.
Sasol said the transaction would close within 10 business days with the total proceeds of the aggregate of R5.525bn and ¤148.75 million (to be settled in US dollars) settled at closing. Thereafter, Air Liquide will officially own and operate the 16 air separation units, which are located in Secunda, Mpumalanga.
Sasol chief executive Fleetwood Grobler said the group was pleased to officially welcome Air Liquide as one of Sasol’s partners in Sasol’s decarbonisation journey.
“This transaction is a significant contributor to us achieving our accelerated and expanded asset disposal programme targets, executed in line with our balance sheet, shareholder value and strategic objectives,” Grobler said.
Sasol said the approval was received subject to various conditions relating to future ownership of the air separation units.
These include joint procurement of renewable power up to 900 megawatts (MW), decarbonisation investments by Air Liquide, ensuring that there’s no negative impact on employment and adhering to various commitments on BroadBased Black Economic Empowerment.
This was in addition to support for localisation and small, medium, micro and black owned enterprises.
In May, the Competition Commission recommended the transaction on conditions including that the parties commit to a substantial reduction in carbon emissions over the next ten years including a 900MW renewable energies power purchase agreement.
Sasol shares rose 3.29 percent on the JSE yesterday to close at R240.
BUSINESS REPORT