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Standard and Poor's raises Sasol's rating
Standard and Poor`s Rating Services has raised Sasol`s long-term foreign currency corporate credit rating from BBB to BBB+ said Business Day`s company news on 3 August 05.
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Sasol considering the disposal of its O&S business
Sasol announced today that it is considering the disposal of its Olefins and Surfactants (O&S) business excluding its co-monomers activities in South Africa. Sasol acquired Condea in March 2001 from German-based RWE Dea for EUR1.3bn. Most of this business was subsequently hosted in Sasol O&S with production facilities mainly in the USA, Europe and South Africa. A smaller part of the business was hosted in Sasol Solvents which, together with the South African-based solvents activities, forms a global solvents business. The entire solvents business is being retained by Sasol. `Since the acquisition, substantial success has been achieved in reducing costs and improving the productivity at Sasol O&S. Pleasing progress has also been made in strengthening relationships with key customers,` says Sasol deputy chief executive Trevor Munday.
`In 2003, Sasol determined that it would continue to grow its chemical businesses conditional upon projects leveraging its technology or securing integrated and highly cost-competitive feedstock positions. The O&S business is only partially integrated upstream into feedstocks and has not adequately provided the integration benefits which Sasol requires,` says Munday. Sasol has embarked on an exciting international commercialisation programme of its leading gas-to-liquid (GTL) fuels technology and possibly also at a later stage its coal-to-liquid (CTL) technology. `This is expected to require significant funding. The GTL and CTL ventures will support or enhance traditionally high margins achieved by Sasol as a consequence of its technology and operating prowess,` says Sasol chief executive Pat Davies. `To optimally leverage both its talented people and financial resources in the next few years, Sasol wishes to establish the saleability of Sasol O&S at fair value,` says Davies. `During this process, Sasol will remain committed to the strategic and operational goals of Sasol O&S and will continue to provide the business with the support necessary to uphold its effectiveness and success,` he says.
Deutsche Bank has been appointed to assist Sasol in procuring offers, assessing the feasibility and attractiveness thereof and executing any potential transaction.
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