fbpx Completion of the Divestment of 50% interest in LCCP Base Chemicals Business, Covenant Amendment and Investor Update | Sasol
Home

Completion of the Divestment of 50% interest in LCCP Base Chemicals Business, Covenant Amendment and Investor Update

×

Warning message

Sorry, this page is not available in English.

Completion of the Divestment of 50% interest in LCCP Base Chemicals Business, Covenant Amendment and Investor Update

Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE: SOL NYSE: SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE: SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
(“Sasol” or “the Company”)

SUCCESSFUL COMPLETION OF THE DIVESTMENT OF SASOL’S 50% INTEREST IN THE
LAKE CHARLES CHEMICAL PROJECT BASE CHEMICALS BUSINESS; COVENANT
AMENDMENT FOR 31 DECEMBER 2020 AND SASOL INVESTOR UPDATE

Completion of divestment and creation of a Joint Venture with LyondellBasell

Sasol shareholders are referred to the Company’s Stock Exchange News Service (“SENS”)
announcement dated 2 October 2020, containing details of the divestment of a 50% interest in
Sasol’s Base Chemicals business at Lake Charles to LyondellBasell (“Transaction”). A further
SENS announcement was released by the Company on 23 November 2020 confirming the
approval of the Transaction by shareholders at Sasol’s general meeting held on 20 November
2020.

Sasol is pleased to announce that the Transaction successfully closed on 1 December 2020
and the 50/50 Louisiana Integrated Polyethylene joint venture (“JV”) with LyondellBasell has
now been established.
The proceeds of approximately US$2 billion will be received within 2 days of closing, with
standard closing adjustments to be effected 30 days thereafter.

Under the terms of the Transaction agreements, LyondellBasell will operate the JV assets on
behalf of the JV and market the polyethylene products on behalf of the two shareholders.

Covenant amendment

Sasol is also pleased to announce the successful conclusion of discussions with our lenders
regarding the covenant amendment for 31 December 2020, which is 4x net debt: earnings
before interest, taxation, depreciation and amortisation (EBITDA). Our lenders have agreed that
the covenant calculation will not be impacted by once off events or delayed receipt of disposal
proceeds that are expected by 31 December.

The covenant for June 2021 will remain at 3x Net Debt: EBITDA.

Investor update

Sasol will host a virtual investor update, today, 2 December 2020 at 14:00 (SA time). The key
focus will be the Sasol 2.0 transformation programme which is designed to deliver the
Company’s vision for Future Sasol.
Chief Executive Officer, Fleetwood Grobler, Chief Financial Officer, Paul Victor, and Executive
Vice President Sasol 2.0 Transformation Marius Brand will host the event via webcast link:
<a href="https://www.corpcam.com/Sasol02122020" target="_blank">https://www.corpcam.com/Sasol02122020</a>. The presentation will be available on the website
<a href="http://www.sasol.com" target="_blank">www.sasol.com</a>.

2 December 2020
Johannesburg

Sponsor: Merrill Lynch South Africa Proprietary Limited

Disclaimer - Forward-looking statements

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,
expectations, developments and business strategies. Examples of such forward-looking
statements include, but are not limited to, the impact of the novel coronavirus (COVID-19)
pandemic on Sasol’s business, results of operations, financial condition and liquidity and
statements regarding the effectiveness of any actions taken by Sasol to address or limit any
impact of COVID-19 on its business; statements regarding exchange rate fluctuations, changing
crude oil prices , volume growth, increases in market share, total shareholder return, executing
our growth projects (including LCCP), oil and gas reserves, cost reductions, our climate change
strategy and business performance outlook. Words such as “believe”, “anticipate”, “expect”,
“intend", “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and
similar expressions are intended to identify such forward-looking statements, but are not the
exclusive means of identifying such statements. 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 and others are discussed more fully in our most recent annual report
on Form 20-F filed on 24 August 2020 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.

Date: 02-12-2020 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.

Ticker: 
SOL,SOLBE1
Headline Date: 
Wednesday, December 2, 2020
Publish Time: 
07:05:00
Source: 
Johannesburg Stock Exchange - SENS NEWS DELAYED
Headline ID: 
1044006664824424976