Sasol writes off R12bn for new BEE deal

Sasol writes off R12bn for new BEE deal”

To break even more than 250,000 Inzalo investors need Sasol's share price to reach at least 462 rand by 2018 but Sasol said on Wednesday that was unlikely to happen, the share price having closed at 398 rand on Tuesday.

Replacing Inzalo, Sasol aims to launch a new 21 billion-rand ($1.6 billion) black empowerment scheme called Khanyisa, which means "to illuminate".

South Africa has set targets for black ownership as it seeks to redress the economic inequalities stemming from white-minority rule under apartheid that ended in 1994.

Sasol Ltd. tumbled the most in 15 months after the biggest producer of fuel from coal said it may sell about 13 billion rand ($980 million) of shares to meet its obligation to repay debt owed by black investors.

Sasol has said it will buy back the shares and write off the shortfall as its current.

The scheme paid 7.6 billion rand in dividends, 5.1 billion rand of which was used to pay down debt and the rest as payouts to shareholders and employees in the scheme.

The Johannesburg-based company sees an equity issuance through an accelerated bookbuild as the optimal solution to finance commitments related to the previous plan, Chief Executive Officer Bongani Nqwababa said in a presentation in Johannesburg. That still left the scheme with around 12 billion rand in debt.

The Inzalo transaction will be unwound in favour of a new R21-billion empowerment scheme, Khanyisa, that will run until 2028 and pass into black hands at least 25% ownership of Sasol's wholly owned subsidiary, Sasol SA.

The Group said Sasol Khanyisa has been created to realise upfront value creation for shareholders and long-lasting ownership of Sasol by Black South Africans through Sasol BEE Ordinary shares listed on the JSE.

"Sasol Khanyisa's success is not dependent on Sasol Limited's share price fluctuations".

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