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Sasol has announced its proposed new Broad-Based Black Economic Empowerment (B-BBEE) ownership structure, Sasol Khanyisa, which will be submitted for shareholder approval in November this year. Sasol Khanyisa is intended to achieve effective direct and indirect B-BBEE ownership of at least 25% in Sasol South Africa, a wholly-owned subsidiary of Sasol. Please click on the videos below for more details on what this means for you as a Sasol Inzalo Groups Limited shareholder or click here to view the info graphic.

     

As a company proudly rooted in our South African heritage, Sasol embraces transformation. We are committed to contributing meaningfully to sustainable transformation as we accelerate this journey across Sasol.

Broad-based black economic empowerment (B-BBEE) is a key enabler for economic transformation and inclusive growth, which is important for South Africa’s long-term sustainability. In line with our values, transformation is a strategic, business and social imperative.

In 2008, the South African economy was performing extremely well, buoyed by upbeat global economic performance and a favourable commodity cycle. It was against this backdrop that Sasol Inzalo was born. Our core objective was to provide many black South Africans the opportunity to own a portion of Sasol, making it truly broad-based. 

It offered an ownership opportunity to our employees, the black public, selected companies and community trusts. This included a foundation focused on advancing science, technology, engineering and mathematics education in South Africa. It continues to be one of the largest B-BBEE transactions in South Africa.

Sasol Inzalo’s objective was to settle any outstanding funding at the end of the transaction through the value gained as a result of the growth in the share price. In short, Sasol Inzalo’s performance is dependent on Sasol’s share price performance.

Sasol has consistently delivered solid operational performance over the past few years, coupled with strategic management interventions. Sasol has also improved the performance of the factors in its control, namely safety, volumes, margins and costs.

However, with the current share price of approximately R400 per share, no net value has been created because the level of the funding per share exceeds the value of the Sasol share price.

Sasol Inzalo was implemented at a Sasol share price of R366 per share in September 2008. Since then the share price has been impacted by high and low crude oil and commodity prices, reaching a high of R632 per share in 2014 and a low of R252 per share in 2009. Today the share price is around R400.

As of today, the growth in the share price has not been enough to settle the funding. At the current share price of approximately R400 for Sasol Inzalo participants, no net value has been created. Sasol is committed to settling the remaining guaranteed debt on behalf of Sasol Inzalo Groups and Sasol Inzalo Public at the end of Sasol Inzalo.

The final valuation for Sasol Inzalo can only be determined by the value of the Sasol share price when the transaction ends in 2018.

The Sasol Inzalo Foundation will continue its good work after Sasol Inzalo ends.

Despite the unpredictability of the past nine years, Sasol’s transformation journey is not over.

For more information on Sasol’s new proposed B-BBEE initiative, please visit the Sasol Khanyisa page