Sasol Khanyisa, a R21-billion broad-based black economic empowerment (BBBEE) ownership structure, has been granted formal approval by Sasol shareholders.
“We are delighted with this outcome as it marks a significant milestone in Sasol’s transformation journey. Sasol Khanyisa will be implemented from June 2018 and we believe [it] will realise sustainable and long-term value for black South African shareholders,” said Sasol joint CEO and president Bongani Nqwababa.
The programme was intended to achieve effective direct and indirect BBBEE ownership of at least 25% in Sasol South Africa, a wholly-owned subsidiary of Sasol. Sasol South Africa houses Sasol’s most cash generative assets, which include its synthetic fuels, chemicals and gas businesses.
Eligible, existing Sasol Inzalo groups and public shareholders will receive bonus Sasol BEE ordinary shares (SOLBE1), that trade on the BEE segment of the JSE, at no additional cost to them. These bonus SOLBE1 and additional SOLBE1 shares issued to shareholders are tradeable on June 2, 2018, realising upfront and immediate value creation for shareholders.
Sasol Inzalo, which was created in 2008, comes to an end in 2018. Eligible participants in Sasol Khanyisa will comprise Sasol’s qualifying employees, existing Sasol Inzalo public and group shareholders, and existing black Sasol shareholders that own shares listed on the empowerment segment of the JSE.
Black members of the public participated in Sasol Inzalo through 54 different groups. In addition, more than 200 000 members of the South African black public participated in the Inzalo Public Funded element and Sasol Limited has more than 50 000 SOLBE1 shareholders. Around 23 000 Sasol employees participated in the Sasol Inzalo employee trusts.
In February 2018, eligible participants will be invited to keep SOLBE1 shares on the empowerment segment of the JSE, instead of converting to Sasol ordinary shares, and should they elect to keep the SOLBE1 designation, shareholders will receive one bonus SOLBE1 share for every four SOLBE1 shares owned; and will be invited to participate in Sasol Khanyisa.
Thereafter, in April 2018, eligible SOLBE1 shareholders and Sasol Inzalo groups and public funded shareholders will be invited to participate in Sasol Khanyisa, receiving one Sasol Khanyisa public share for every Sasol Inzalo share held and one Sasol BEE ordinary share for every ten Sasol Khanyisa public shares held.
These bonus SOLBE1 and additional SOLBE1 shares issued to shareholders are tradeable from the date of issue.
At the end of the ten-year period and, once the vendor funding has been settled, Sasol Khanyisa public shares will be exchanged for SOLBE1 shares listed on the empowerment segment of the JSE. This will lead to long-lasting, unencumbered ownership of Sasol Limited by black South Africans.
Participants in the Sasol Khanyisa employee share ownership plan will receive a debt-free share grant of Sasol ordinary shares and Sasol shares listed on the empowerment segment of the JSE worth R100 000.
These shares will, subject to taxation, become theirs to keep or sell at the end of a three-year period, in 2021. Participating employees will also receive a pro rata portion of dividends received by the Sasol Khanyisa trust during the three-year period.
The Sasol Inzalo Foundation will be renamed and will continue as a public benefit organisation, driving excellence in science, technology, engineering and mathematics education at all levels of the education value chain.
The Sasol Inzalo Foundation benefited over 20-million learners in South African public schools through 118 natural science, technology and mathematics school work books that were developed.
In addition, more than 800 bursaries and fellowships have been awarded to students at 16 South African universities.