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SOL
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Sasol Limited - Sasol responds to joint announcement not to appeal
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
(ISIN: ZAE000006896)
Share codes:
JSE - SOL
NYSE - SSL
("Sasol")
Sasol responds to joint announcement not to appeal
Sasol refers its shareholders to the joint announcement today by Petronas,
Sasol, Tshwarisano LFB Investment (Pty) Limited and Worldwide African Investment
Holdings.
Although disappointed with the outcome and much of the commentary in the
judgement published by the Competition Tribunal, Sasol respects the process and
decision made relating to the proposed merger of its liquid fuels business with
Engen.
The business case and merits of this merger remain compelling in Sasol"s view.
It is considered unfortunate that an opportunity to create a national fuel
champion, in much the same way as other countries have their own (eg BP of the
United Kingdom, Total of France, etc) in markets that are significantly larger
than South Africa"s, has been lost.
Pat Davies, Sasol CE, said: "The possibility of a protracted legal process going
forward through an appeal procedure was an important factor in Sasol reaching
the decision, together with our partners, not to appeal against the Competition
Tribunal ruling. The competition law evaluation process applying to the
proposed merger began in November 2004 and thus has already lasted about sixteen
months. This lengthy period has caused increasing uncertainty among the
employees of the merging parties. Sasol considers extending this uncertainty to
be untenable and potentially damaging to the interest of its liquid fuels
business and its stakeholders."
Trevor Munday, Sasol Deputy CE, said: "In reaching this joint decision, which
Sasol believes is in the interests of all stakeholders, Sasol wishes to thank
and pay tribute to Petronas of Malaysia, and notably its President Tan Sri Dato
Mohd Hassan Marican and senior members of Petronas management, for the
transparent, friendly and business-like manner in which the negotiations of the
proposed merger were held. Petronas is both a strong supporter of South Africa
and one of the country"s largest foreign investors and it has been a privilege
for Sasol to have been closely associated with them through this process."
Pat Davies added: "Sasol also wishes to thank the promoters of its empowerment
partner, Tshwarisano Investment (Pty) Limited, for their constructive engagement
in the proposed merger process. Sasol is pleased that the relationship with
Tshwarisano will continue in the future through its ownership position in
Sasol"s liquid fuels business."
13 March 2006
Johannesburg
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 13/03/2006 02:05:02 PM Produced by the JSE SENS Department
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