Sasol sells 30 percent stake in Mozambique pipeline
The deal is to help the petrochemicals giant pay down debt amid mounting pressure from creditors.
Sasol is facing increased pressure from creditors to meet its financial obligations. The group is now selling a 30 percent stake in the Republic of Mozambique Pipeline Investment (Rompco) for R5.1 billion.
The petrochemical giant will retain a 20 percent stake in the natural gas channel and maintain the 865km pipeline. The Rompco channel transports gas from the Pande and Temane fields in Mozambique to Sasol in South Africa.
The buying consortium includes black-owned investment company Reatile Group and IDEAS fund. IDEAS is an infrastructure equity fund that is managed by Old Mutual subsidiary African Infrastructure Investment Managers.
The deal is part of an accelerated asset sales programme that will help the company meet its debt obligations and reduce borrowings that ballooned amid cost overruns at a US chemicals project.
The sale comprises an initial amount of R4.1 billion and a deferred payment agreement of over a billion rand if certain milestones are achieved by June 2024.