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Sasol Inzalo Black Economic Empowerment ('BEE') Transaction

Category: Agreement
Date: 16 May 2008
Sub Category:Black Economic Empowerment Transaction (South Africa)
Location:Republic of South Africa
Subject Matter:Economic Development | Oil and Gas | Petroleum
URL: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/03-25-2008/0004779282&EDATE=
Summary Information:
The Sasol Inzalo Black Economic Empowerment (BEE) Transaction ('the BEE Transaction') was approved by a general meeting of Sasol's shareholders on 16 May 2008.

This BEE Transaction aims to provide 'long term benefits to a broad group of Black people… with a focus on Sasol's own employees and lower income groups, particularly women' (Detailed Terms, 2).

A BEE transaction involves the transfer of all or part of the ownership, management or benefits of an enterprise or productive asset to the control of 'historically disadvantaged South Africans' (HDSAs), a term which includes black, coloured and Indian South Africans, women and the disabled.
Detailed Information:
The BEE Transaction will allow BEE participants to benefit from 10% ownership of equity in Sasol Ltd. These BEE participants are namely the Black public (3%), BEE groups selected by Sasol (1.5%), Sasol employees (4%) and Sasol Inzalo Foundation (1.5%). BEE participants will be able to acquire direct and/or indirect ownership in Sasol's issued share capital, with full ownership and voting rights. Sasol's Chief Executive, Pat Davies, announced Sasol anticipates the BEE Transaction will benefit more than one million potential beneficiaries (Sasol, Sasol Inzalo: The Dawn of a New Era For Sustained Broad-Based BEE).

The details of the BEE transaction are specified in the 'Detailed Terms of Sasol Inzalo Black Economic Empowerment ('BEE') Transaction and Withdrawal of Cautionary Announcement.' Elements include:

  • 'Broadening and transforming Sasol's shareholder base as a listed entity
  • 63,1 million shares valued at R 25,9 billion - the single largest broad-based BEE transaction to date ...
  • Positive impact on net asset value per share ...
  • Sasol Inzalo Foundation to facilitate skills development and capacity building in the critical areas of mathematics, science and technology
  • Meaningful long-term benefits to be spread widely among black South Africans, primarily in the lower income groups and particularly women
  • Participants will benefit from Sasol's domestic and international growth
  • Compliance with the Broad-based BEE Codes of Good Practice, with effective black ownership of 19,7% of Sasol's South African business.'

    The BEE Transaction will create two new classes of shares, which will be issued at a discounted rate of approximately 11% below the market price. To mitigate dilution to existing ordinary shareholders, Sasol intends to repurchase the same number of shares that would be issued under the BEE Transaction.

  • Related Entries

    Organisation
  • Sasol Ltd - Signatory
  • Legislation
  • Broad-Based Black Economic Empowerment Act, 2003 (South Africa)
  • Policy/Strategy
  • Charter for the South African Petroleum and Liquid Fuels Industry
  • Black Economic Empowerment
  • Broad-Based Black Economic Empowerment Codes of Good Practice

  • References

    Media Release
    Sasol (25 March 2008) Detailed Terms of Sasol Inzalo Black Economic Empowerment ('BEE') Transaction and Withdrawal of Cautionary Announcement
    Sasol (16 May 2008) Sasol Shareholders Approve R30 Billion Broad-Based BEE Deal
    Sasol (25 March 2008) Sasol Inzalo: The Dawn of a New Era for Sustained Broad-Based BEE

    Glossary

    Black Economic Empowerment Transaction (South Africa)

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