JSE-listed petrochemicals group Sasol says South African gas development company iGas and Companhia Mocambiçana de Gasoduto (CMG) have exercised their pre-emptive right to acquire a 30% equity interest in the Republic of Mozambique Pipeline Company (Rompco) pipeline.
The companies exercised this right after Sasol announced in May last year that its subsidiary, SSA, had agreed to sell a 30% equity interest in Rompco to an acquisition vehicle beneficially owned by a consortium.
The sale shares have now been sold for an initial R4.1-billion plus a deferred payment of up to R1-billion, should certain milestones be achieved by June 30, 2024.
SSA retains a 20% shareholding in Rompco, while Sasol will continue to operate and maintain the pipeline.
Sasol says its agreement with Rompco to transport gas to its Secunda operations remains unaffected by the transaction.
The transaction marks the completion of Sasol’s asset divestment programme, which it announced in March 2020. It also means that iGas and CMG are now the majority shareholders, as their equity shares will increase from 25% each to 40% each.
Rompco owns an 865 km gas transmission pipeline stretching from Mozambique to South Africa.
Empresa Nacional de Hidrocarbonetos, the holding company of CMG, comments that the financial close of the transaction symbolises the commitment by the Mozambican government to advance long-term natural gas trade between South Africa and Mozambique.
South Africa’s Central Energy Fund, the holding company of iGas, says the acquisition of these shares heralds a new era in fostering partnerships that are geared to promote regional integrated energy development, which is critical for socioeconomic development in both countries.