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Sasol considering the disposal of its O&S business excluding its co-monomers
activities in South Africa
Sasol Limited(Incorporated in South Africa)
(Registration number: 1979/003231/06)
ISIN Code: ZAE000006896
Share Code: SOLNYSE Code: SSL
(`Sasol`)
Sasol considering the disposal of its Olefins and Surfactants (O&S) business
excluding its co-monomers activities in South AfricaSasol 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 Euro1,3
billion. Most of this business was subsequently hosted in Sasol O&S withproduction 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 adequatelyprovided 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 requiresignificant 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 thenext 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,` hesays.
Deutsche Bank has been appointed to assist Sasol in procuring offers, assessing
the feasibility and attractiveness thereof and executing any potential
transaction.-ends-
1 August 2005
Johannesburg
Issued by sponsor: Deutsche Securities (SA) (Proprietary) LimitedDate: 01/08/2005 12:00:07 PM Produced by the JSE SENS Department |
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