The initial BEE deal stood at R17,9-billion, but grew to a staggering R25-billion since the initial announcement was made last year. The new amount included the selling of 10% Sasol ownership to black investors.
“The price on the transaction has been impacted by the recent running of our share price. There is a non-cash accounting impact in terms this share price increase,” said CE Pat Davies.
The deal was broken down into 3% stakes to be sold to the South African black public, 1,5% to selected BEE groups, 4% to Sasol employees and 1,5% to the Sasol Foundation.
Last year, the Department of Trade and Industry raised concerns about Sasol’s proposed employee ownership scheme, saying that it would fall short of the level of empowerment envisioned in the country’s Codes of Good Practice for broad-based BEE. The department issued a statement after Sasol indicated that the 4% allocation would be shared among permanent black residents as well as white employees.
Funding for the transaction came from a combination of equity, third party funding and facilitation by Sasol, which the company said was aimed to externalise as much debt as possible.
The company aimed at making skills development an iatrical part of the transaction, especially skills within the science and technology sector.
“In a global context, transformation is not just about sustainability, but also growth. Our diversity management skills are critically important, and we are well placed with the experience we have in the energy sector,” he added.