JSE-listed petrochemicals giant Sasol says the divestment of its 50% interest in the Gemini high-density polyethylene (HDPE) joint venture to Ineos Olefins and Polymers US successfully closed on December 31, making Ineos the 100% owner of the asset.
Gemini is a toll manufacturer of bimodal HDPE products.
Ineos had been the operator of the unit since 2017, and the company previously stated the acquisition would allow it to further expand its reach in the specialty polyethylene markets of pressure pipe and high molecular weight film.
Sasol will use the $404-million paid by Ineos for the 50% stake in Gemini HDPE to repay some of its near-term debt obligations.
Meanwhile, Sasol in December also signed a sale securities purchase agreement with Azura Power for the divestment of the company’s shareholding in the CTRG gas-to-power plant, in Mozambique, for $145-million.
This transaction forms part of Sasol’s ongoing strategic asset divestment programme.
Sasol says it remains committed to upstream oil and gas operations in Mozambique, which continue to be integral to the company’s core strategy.