Fuels and petrochemicals group Sasol will sell a 10% stake in the company to black investors in South Africa’s biggest black economic empowerment (BEE) transaction to date, worth R25,9-billion.
Sasol, the world’s top maker of oil from coal, said the deal involving 63,1-million shares will broaden and transform the group’s shareholder base. The group said in September last year it planned the transaction.
BEE is designed to widen ownership of the South African economy, which is still mainly in white hands 14 years after the end of apartheid.
”We will make a difference by creating significant economic opportunity for more than one million potential beneficiaries ranging from individuals to rural women’s groups who can invest in Sasol,” Sasol CEO Pat Davies said in a statement.
The transaction will have a positive impact on the group’s net asset value per share, Sasol said.
Some previous BEE deals have been criticised by unions and opposition politicians, who say they benefit a small group of politically connected black businessmen to the exclusion of the vast majority of poor black South Africans.
Sasol said the transaction will also see the group launching a public investment scheme for black South Africans in which it will issue 18,9-million ordinary shares and broaden employee ownership to almost 27 000 employees.
The black public will acquire 3%, black investor groups 1,5%, Sasol employees 4% and the Sasol Inzalo foundation 1,5%.
The transaction will be funded mostly through the issue of preference shares, although the investors and black groups taking part will contribute some cash, including about R400-million that is estimated will be contributed by the black public.
The black investor groups selected to take part will have to contribute about 170-million, Sasol said. — Reuters