The company, headed by Pat Davis, told the JSE that the broad-based deal had been successfully concluded with Tshwarisano.
In terms of the agreement, Tshwarisano has acquired a 25% shareholding in Sasol's liquid-fuels business housed in Sasol Oil.
This announcement follows on from a failed bid to form a joint venture company, Uhambo Oil, between it and Petronas International Corporation.
"The Tshwarisano transaction represents the largest BEE transaction in the liquid-fuels industry and serves as a model for the structuring of sustainable and value-creating empowerment transactions.
“Both Sasol and Tshwarisano have not only been responsive to prevailing BEE and and transformation requirements but have gone further to position Sasol Oil as a platform for growth which will benefit all its stakeholders," says Fradreck Shoko of JPMorgan Chase Bank, joint lead adviser and arranger to Tshwarisano.
Tshwarisano, which means 'pulling together' in Sesotho, comprises a selection of historically-disadvantaged groups across the country. Its chief promoters are Dr Penuell Maduna, Hixonia Nyasulu and Reuel Khoza.
“We are particularly pleased about the broad composition profile of Tshwarisano. The direct beneficiaries of Tshwarisano number many hundreds of thousands of historically-disadvantaged South Africans.
“More than 50% are women. The indirect beneficiaries number an estimated three million people," says Tshwarisano chairperson Maduna.
He adds that beneficiaries also include the youth, the disabled and rural communities.
Sasol is providing facilitation and support for Tshwarisano's financing requirements, which amount to about R1,1-billion, and the petrochemicals company has provided guarantees for this debt as well as agreeing not to recover guarantee fees, all of which should lower Tshwarisano's cost of borrowing.
In addition, Sasol is also establishing and funding trusts within Tshwarisano for the benefit of the under privileged.
“These initiatives are aimed at reducing financing costs and improving the long-term business benefits that will accrue to Tshwarisano's broad base of empowerment shareholders," says Sasol CE Davies, adding that for Sasol transformation in South Africa is a strategic, business and moral imperative.
“We aspire to advancing our empowerment initiatives in ways that are sustainable, credible and of benefit to the Sasol group, all our stakeholders, and the country as a whole,” he adds.
Sasol initially planned to incorporate Tshwarisano into the envisaged Uhambo Oil, a proposed joint venture company between Sasol and Petronas International Corporation, which was turned down by the Competition Tribunal at the end of February.
“The intention from the start, however, was that if this Uhambo merged company was disallowed, Tshwarisano would become a 25% shareholder in Sasol's liquid fuels business,” Sasol told the Johannesburg-based bourse.
The new Sasol Oil board will comprise 12 directors - three directors from Tshwarisano, six directors from Sasol and three executive directors from Sasol Oil. Their names will be announced as soon as the board is properly constituted.
'Sasol and Tshwarisano have entered into a landmark BEE transaction that has been significantly facilitated by Sasol regarding pricing and the financing of costs that will allow real vesting of value to its BEE partners,” says Philip Reynolds of Nedbank Capital Corporate Finance, joint lead adviser and arranger to Tshwarisano.
“The transaction incorporates a substantial, broad-based BEE element with women, rural participants and credible business partners.
“This sets a new benchmark for BEE transformation in South Africa, as envisaged by the Codes of Good Practice on Broad-Based Black Economic-Empowerment," he adds.
Says David Munro, Standard Bank deputy CE at Corporate and Investment Banking: “This landmark R1,45-billion deal has provided Standard Bank with the opportunity to be involved in and to make a real difference to furthering broad-based black economic empowerment in South Africa.”
Munro said that an important aspect of this transaction is that Standard Bank is the sole provider of domestic funding of just under R1,3-billion, which has allowed it the flexibility to provide a customised solution.