Petrochemicals giant Sasol on Thursday announced the appointment of Ngonyama Capital to provide market making services for Sasol’s black economic empowerment ordinary (Solbe1) shares.
Ngonyama’s appointment is expected to enhance the value proposition of Solbe1 shares and increase liquidity of Solbe1 shares in the open market.
The shares are listed on the empowerment segment of the JSE.
“Transformation in the form of share ownership in Sasol by black South Africans is a business, social and moral imperative for us and essential to bring about a more inclusive economy,” stated Sasol CFO Paul Victor.
He added that the agreement with Ngonyama aimed to unlock additional value by introducing a market maker that can facilitate liquidity of Solbe1 shares, thereby improving its investment proposition for Sasol’s current and prospective black shareholders.
Ngonyama will buy and sell Solbe1 shares in the open market for its own account and sole risk, independent of and without influence by Sasol.
The agreement became effective on Thursday and is valid for three years.