Sasol considering additional divestments to reduce its $10 billion debt

Sasol's asset review process has been extended to other measures to reposition its debt.

According to people with knowledge of the matter, Sasol is considering additional divestments as it explores ways to reduce its $10 billion of debts, including the potential sale of its stakes in an African gas pipeline and a Middle Eastern plant.

Sasol is working with advisers to review its 49 percent stake in Oryx GTL, which runs a gas-to-liquids plant in Qatar, and weighing options for Sasol Exploration & Production International, as well as its 50 percent holding in the Rompco gas pipeline, the source told Moneyweb. 

“It has also discussed plans for a potential rights issue and has been negotiating with lenders to arrange greater flexibility over repayments. Sasol is still considering a number of possibilities and hasn’t decided whether to proceed with the additional divestments,” the source said.

According to a statement released by Sasol, an asset review process started in 2017 and has expanded to other measures designed to reposition the company over the next two years. The company plans to repay at least $6 billion of its debt by the end of June 2021 and will examine potential asset sales before deciding to pursue a rights issue.