SASOL INZALO: THE DAWN OF A NEW ERA FOR SUSTAINED BROAD-BASED BEE
25 March 2008
Sasol today announced the final terms of its groundbreaking R26bn broad-based Black Economic Empowerment (BEE) transaction, the largest to date.
This will give millions of ordinary South Africans the opportunity to own a part of Sasol and benefit from its success, and will create a legacy through major
investment in skills development which is critical to our economy.
Why are we doing the transaction?
Sasol's CE, Pat Davies says "Sasol is truly committed to South Africa's transformation and wants to make broad-based economic empowerment a reality. We
will make a difference by creating significant economic opportunity for more than one million potential beneficiaries ranging from individuals to rural
women's groups who can invest in Sasol. We also believe that sustaining strong
economic growth is largely dependent on providing the majority of South Africans with the opportunity to develop the skills needed to build our nation."
What makes this transaction unique?
Investors will participate in ownership of 10% equity in Sasol Limited and benefit from Sasol's domestic and international growth. The transaction is
unique in that it is affordable and accessible to a wide range of participants including the black public. The true spirit of broad-based empowerment is
reflected in the inclusive structure of the transaction with its four categories of participation and has been made possible through extensive engagement with
unions, government, major shareholders, the National Empowerment Fund and other parties.
The BEE participants who will acquire indirect and/or direct ownership in Sasol's issued share capital, with full economic and voting rights, are: Black
Public (3,0%), BEE groups selected by Sasol (1,5%), Sasol Employees (4,0%) and the Sasol Inzalo Foundation (1,5%).
The black public invitation is designed to meet the needs of different investors through two invitations, one being funded where a small cash contribution is required and one being a cash purchase alternative. Both will
accommodate investors ranging from individuals, companies, partnerships or trusts, to informal groups such as stokvels, church groups and families. Sasol
has set itself the goal of reaching as many people as possible and hopes that anywhere from 100 000 to 200 000 shareholders will participate through this
invitation. Sasol has been working closely with the National Empowerment Fund (NEF) which has valuable experience in reaching a broad base of potential investors.
Selected BEE groups fall into two categories, those currently involved in Sasol's business as suppliers, customers, franchisees and unions, as well as
groups focusing on broader empowerment objectives such as community upliftment projects and women's groups. A comprehensive process to identify appropriate
partners for this category is nearing completion. 86 BEE groups have already accepted an invitation to participate.
The Employee Scheme will broaden ownership in Sasol to almost 27 000 employees, 60% of whom are black. Broadening employee ownership in Sasol will spread the benefits of a significant portion of the BEE transaction among
individuals who contribute to the sustained success of our company.
Reflecting Sasol's ongoing commitment to skills development and capacity building, the Sasol Inzalo Foundation will focus its efforts on the development
of critical skills in maths, science and technology. "This Foundation is an extension of Sasol's long-standing tradition of giving back to the community through, among others, artisan training programmes, bursaries, co-operation
agreements with tertiary institutions and other sponsorships", says Sasol Executive Director, Nolitha Fakude.
"Inzalo" is a powerful word signifying birth, creation of life and new beginnings and will usher in a new era of broad-based share ownership, and give
momentum to skills development and economic capacity building. "This transaction
bears testimony to Sasol's commitment to help redress the historic exclusion of
the majority of our citizens from wealth creation. Black people from all walks of life can now take ownership in a successful global company geared to grow their investment and wealth", says Nolitha Fakude.
A general meeting of shareholders will take place at 09:00 on 16 May 2008, in Rosebank, to approve and pass the resolutions that are required to implement the
Sasol Inzalo transaction.
- 10% equity ownership of Sasol through the Sasol Inzalo BEE Transaction
- 63,1 million shares valued at R26 billion - the single largest
broad-based BEE transaction to date
- Facilitation of the transaction is in line with market norms
- Participants will be employees, the Sasol Inzalo Foundation, black BEE
groups and the black public
- Sasol Inzalo Foundation will facilitate skills development and capacity
building in the critical areas of mathematics, science and technology
- Meaningful long-term benefits to be spread widely among black South
Africans, primarily in the lower income groups and particularly women
- Participants will benefit from Sasol's domestic and international growth
Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future
results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples
of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share,
total shareholder return and cost reductions. Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour" and "project" and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report under the Securities Exchange Act of 1934 on Form 20-F filed on 12 October 2012 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive;
when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events.
Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
2007: First Terms Announcement
March 2008: FINAL Terms Announcement
2007: Media Announcement
March 2008: Media Presentation
March 2008: Analyst Presentation
Notice: General meeting of shareholders scheduled for 16 May 2008
Proxy: General meeting of shareholders scheduled for 16 May 2008
Circular: General meeting of shareholders scheduled for 16 May 2008
General meeting of shareholders to approve the Sasol Inzalo BEE Transaction