SASOL SELLS A 25% STAKE IN A MOZAMBIQUE COMPANY
COMPANHIA Mozambicana de Gasoduto SARL (CMG), owned by the Mozambique government, has finally exercised its option to buy a 25% stake in Republic of Mozambique Pipeline Investments Company (Rompco), owned by SA’s largest fuel maker, Sasol Group.
Rompco operates and maintains the cross-border pipeline that transports natural gas from the Temane central processing facility to the gas network at Sasol’s Secunda, Mpumalanga, plant.
“The deal has been sealed, and financing is expected to be completed soon,” said Sasol spokesman Johann van Rheede.
This deal has resulted in Sasol’s shareholding in Rompco dropping to 50%. Asked if CMG could increase its stake to a majority shareholding, Van Rheede, said: “CMG owns 25%, which is the maximum of their option.”
At June 2005, Sasol had a 100% interest in Rompco, but the following month it sold 25% to South African Gas Development Company – owned by the SA Government. Sasol sold the stake for R595m, realising a R205m profit.
The agreement always was that the SA and Mozambican governments would each own 25% of Rompco.
Meanwhile, Van Rheede confirmed that discussions were continuing with potential bidders for Sasol Olefins & Surfactants.
Sasol announced its intention to sell the business two years ago, excluding its
comonomers activities in SA. The group said a rigorous process had been followed to prepare the business for sale.
“Sasol envisages completing the divestment of its Olefins & Surfactants business within this financial year ending June 2007, subject to regulatory and other approvals,” said Van Rheede.
Sasol has said since 2005 that the sale of Olefins & Surfactants is subject to an acceptable selling price being attained. It has also said it’s committed to the strategic and operational goals of the business and will provide the support necessary to maintain its effectiveness and success. The company’s assets were valued at R11,8bn at 30 June 2006.
It’s likely that a private equity firm will snap up Olefins & Surfactants.