|
|
Sasol reaches new high of R71 a share
Sasol reached a new high of R71 on 17 Apr 01, with analysts still saying that the stock was underpriced. The oil price has remained strong and when oil does well, Sasol does well. It is believed that there could be a strong overseas buying of the stock, following Sasol's establishment of a bridgehead in Europe with its recent acquisition of Condea, the German chemicals company. Another analyst said that Sasol was very cheap and said the price could rise as high as R80. Investec Asset Management also said that Sasol could be one of the prime SA targets for an overseas takeover, along with Sappi, the paper firm.
|
| |
Sasol may attract international predator
Investec asset management commented on Sasol as an attractive target for an international predator. This was because Sasol's historically low P:E ratio, with its share price around 6 times its annual earnings. This compared with a ratio of 16 to one of the global oil firms such as Exxon-Mobil, BP and shell. The main reason for a takeover would be to get hold of Sasol's gas to liquids technology and not for their SA businesses. Sasol was also expanding offshore, with gas to liquids technology and had recently acquired Condea, a German chemicals firm. Most of Sasol's cost base was in rands, with the majority of its income in dollars. Sasol could also be easily digested by an international oil company, as it was far smaller than the global oil giants.
|
| |
Sasol accused of emitting harmful gases
The company has been accused of emitting dangerous levels of hazardous gases by Sasolburg communities and an environmental lobby group. The hazardous material identified by the lobby group is carcinogen benzene, vinyl chloride and menthylene chloride some of which have been linked to respiratory ailments in the area. Sasol said that the level of emission was in line with the Air Pollution Prevention act of 1965 while the government said that they were aware of the problem and were reviewing the laws governing pollution in the country. A 2000 environmental report by the company noted that 42 000 tons of volatile organic compounds were emitted annually in the Sasolburg area. In an effort to minimise risks, the group is currently spending R8.5m on the reduction of benzene levels and will be natural gas from Mozambique to further reduce its pollution.
|
| |
| |
|
| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
| |
|
|
