Mungo Soggot
THE cash raised from the sale of Zenex Oil to Worldwide Africa Investment Holdings will go to the Zenex Foundation, which funds education projects for the under- privileged, Zenex Oil said this week.
The foundation was started by United States oil giant Esso when it pulled out of South Africa in 1987 and set up Zenex Oil. So far the foundation has been fed with all non- retained income from Zenex Oil’s retail operations.
On Monday Zenex announced it was negotiating with Worldwide Africa Investments to sell its operation as a going concern. It said the business would continue to operate under the Zenex name.
Zenex Oil managing director Paul Richards says the proceeds of the sale will pass to the trust Esso set up to control both Zenex Oil and the Zenex Foundation. After the deal is wrapped up, the trust will only control the Zenex Foundation.
Richards says the deal could boost the fortunes of the foundation: instead of being dependent on the oil business, it will have a large lump sum with which to invest in a diverse portfolio. Richards says the amount the company will be sold off for remains confidential.