Divestment by Sasol Chemicals North America LLC of its 50% Equity Interest in Gemini HDPE LLC

JOHANNESBURG, Nov. 24, 2020 /PRNewswire/ -- The board of directors of Sasol is pleased to announce that Sasol Chemicals North America LLC ("SCNA"), a wholly owned subsidiary of Sasol, has agreed principle terms with INEOS Gemini HDPE Holding Company LLC ("INEOS") and a new entity to be formed by INEOS ("Newco") to sell its 50% membership interest in Gemini HDPE LLC ("Gemini"") to Newco (the "Sale")  for USD404 million (subject to adjustment for cash, debt, working capital and other items). Gemini produces and sells bimodal high-density polyethylene based in La Porte, Texas, United States of America.

The Sale represents a further step in achieving Sasol's strategic and financial objectives by accelerating the focus on specialty chemicals and reducing net debt. Proceeds from the transaction will be used by Sasol to repay near-term debt obligations.

Concurrent with the closing, the Company will have completed the restructuring of its existing debt facilities and the security package in respect thereof, resulting in Sasol and its subsidiaries being released from any existing security being provided in relation to Gemini (the "Refinancing").

The representations and warranties being given by SCNA are general corporate representations and warranties.

As disclosed in the Sasol financial statements, prepared in accordance with IFRS and audited by the Company's auditors, PricewaterhouseCoopers Inc., the value of the net assets relevant to the sale is USD 176 million (approximately R3 billion) as at 30 June 2020, which is net of the debt facilities associated with the interest. The loss attributable to the net assets was USD 18 million (approximately R290 million) for the year ended 30 June 2020.

The Sale between SCNA, INEOS and Newco will only be effective upon restructuring of the existing debt facilities and the Company's security package in respect thereof. Closing is anticipated to occur by 31 December 2020. 

The Sale is classified as a Category 2 transaction in terms of the Listing Requirements of the JSE.

For further information, please contact:

Sasol Investor Relations,
Feroza Syed, Chief Investor Relations Officer
Direct telephone: +27 (0) 82 557 7740
[email protected]

Disclaimer - Forward-looking statements

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SOURCE Sasol Limited