Sasol has new promises...

WHAT’S IN IT FOR MOST BLACK SHAREHOLDERS? Khanyisa deal will have net value from day one, as no further capital or external debt would be required from participants – CFO.

What’s in it for shareholders this time? Khanyisa will cost Sasol R7.3 billion over ten years from 2018. Unlike Inzalo, it will be funded by Sasol and will hold a 25% stake in the SA operations.

Sasol CFO Paul Victor said Khanyisa will provide participants with value from day one, as Sasol will be giving free shares to its employees and ordinary black shareholders valued at R1.9 billion and R1 billion, respectively. This bonus means shareholders don’t have to wait for ten years to get value, he said. They can also monetise their shareholding.

Sasol has two empowerment structures that trade on the JSE with different shareholders: Inzalo (funded by debt) and Sasol BEE Ordinary shares (SOLBE1), which trades at a 13% discount to Sasol’s share price and has no debt. SOLBE1 shareholders have three options: keep their shares on the JSE, participate in Khanyisa, or convert their shares into Sasol shares.

Those opting to keep their SOLBE1 shares would receive a bonus share for every four SOLBE1 shares they hold.

If existing SOLBE1 shareholders participate in Khanyisa, they’d receive one Khanyisa share for every one SOLBE1 share held and a further SOLBE1 share for every ten Khanyisa shares held.

Inzalo shareholders would receive one Khanyisa share for every one Inzalo share held and a further one SOLBE1 share for every ten Khanyisa shares held.

Various Sasol employees would be awarded Sasol, SOLBE1 and Khanyisa shares with vesting periods of 3-10 years.

Sasol shareholders need tow approve the Khanyisa scheme and options at the AGM in November.

Riaz Gardee at Liberty said whichever option is choosen, any shareholder must be able to assume the risks inherent with investments.