/ 27 March 1998

CEF set to list on JSE

FRIDAY, 1.15PM:

THE Central Energy Fund is considering streamlining its operation by ridding itself of non-core interests and establishing itself as an integrated energy company, to be listed on the Johannesburg Stock Exchange.

According to proposals made at a CEF bosberaad, the state will retain a 50% to 60% controlling interest in the listed company, with the remainder of shares sectioned off between black empowerment groups, strategic equity partners and employees.

The report recommends Soekor remain as the upstream exploration and production company, while Mossgas could remain as the refining company.

The Strategic Fuel Fund could then be positioned as the group’s oil trading and storage company. The report also recommends that Petronet be transferred from Transnet to the new company, and a new liquid fuel distribution and marketing company be formed in partnership with emerging oil companies.

The report says: “This structure would preserve the state’s ownership and control of natural resources, and create a vehicle to actively participate in the energy sector without distorting free competition in and outside the country.”