http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.75Change: 0.07
R/$ = 10.91Change: -0.06
Au 1205.55 $/ozChange: -18.63
Pt 1252.50 $/ozChange: -17.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 23, 2005

Sasol sells 12,5% in Uhambo to BEE group

Back
Africa|Africa Energy Resources|Engen|Exel|Petronas|Resources|Sasol|Africa|South Africa|Energy|Local Subsidiary|Synthetic Fuel Producer|Competition Commission|Hixoni Nyasulu|Pat Davis|Penuell Maduna|Ruel Khoza
Africa|Engen|Resources||Africa||Energy|||
africa-company|africa-energy-resources|engen|exel|petronas|resources|sasol|africa|south-africa|energy|local-subsidiary|synthetic-fuel-producer|competition-commission|hixoni-nyasulu|pat-davis|penuell-maduna|ruel-khoza
© Reuse this Synthetic fuel producer Sasol has sold an effective 12,5% in Uhambo Oil - its proposed liquid-fuels joint-venture firm with Petronas - to black economic-empowerment (BEE) consortium Tshwarisano for R1,45-billion, it said yesterday.

Uhambo Oil, which will comprise a 50:50 merger between Sasol's Liquid Fuels business (ex-Sasol Oil) and Petronas's local subsidiary, Engen, is subject to approval by the Competition Tribunal, although Sasol CE Pat Davis said yesterday that the merger had received a favourable recommendation from the Competition Commission.

As a result of the empowerment transaction, Uhambo Oil will boast a 25% BEE shareholding, as Engen also brings Africa Energy Resources, also with a 12,5% stake, to the table, and Sasol and Petronas will each hold 37,5%.

Davis said that, should the merger not receive competition approval, Tshwarisano would become a 25% shareholder in Sasol's liquid fuels business on its own.

He said that Competition Tribunal hearings into the merger will begin early next month and are expected to continue for about three weeks.

Davis said that Sasol had, from the outset, striven to ensure that the empowerment deal included 'meaningful participation' of broad-based groups.

The BEE consortium is led by former Minerals and Energy Minister Dr Penuell Maduna, Ruel Khoza and Hixoni Nyasulu, who hold a collective 30,1% of equity in the Tshwarisano consortium.

The remainder is belongs to women (54%), an Uhambo employees' trust, a rural-community trust and a group of previous shareholders in Exel, Sasol's BEE fuel retail business, which include the Autoworkers provident and pension funds and a rural-women-upliftment trust.

In all, some 150 000 new shareholders will benefit from the deal.

Davis said that Sasol had contributed some R1-billion to facilitating the deal, including a R45-million equity payment to two trusts, aimed at empowering the severely underprivileged and the Uhambo staff.

It has also provided guarantees to the R1,14-billion senior debt and has agreed not to recover guarantee fees.

In a response to shareholder misgivings over whether value was being lost through the empowerment transaction, Davis said that he was confident that the deal would prove to the long-term benefit of shareholders.

Sasol's liquid fuels business's operating profit rose by 33% to R1,9-billion in the 2005 financial year to end-June, driven mainly by higher refinery margins.

If it receives competition authority approval, Uhambo Oil will be South Africa's largest liquid fuels company, with 48% of the country's refining capacity and 34% of retail market share.

Edited by: Liezel Hill
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 12 minutes ago Sasol announced on Thursday that its broad-based black economic empowerment (BBBEE) transaction, Sasol Inzalo, has been partially refinanced, making a significant contribution to reducing its financing costs. The refinancing would see shareholders of Sasol Inzalo...
Updated 21 minutes ago International packaging and paper group Mondi has attracted a long-term credit-rating upgrade from Moody’s Investors Service. In a statement to shareholders on Thursday, the dual-listed group announced the credit rating hike from Baa3 to Baa2.
Updated 56 minutes ago Sephaku Holdings, which is in the process of finalising its interim results for the six months ended September 30, expects to swing to a basic loss a share of between 1.9c and 2c for the half-year, from basic earnings a share of 3.32c in the first half of the prior...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks