Sasol sells 30% stake in Mozambique gas pipe for R5.1bn

The energy and chemicals group will receive as much as R5-billion for the 30 percent stake.

Sasol is selling a 30% stake in the Republic of Mozambique Pipeline Company (ROMPCO) to a consortium of investors for up to R5.15-billion. The deal will help the energy and chemicals group reduce its debt.

ROMPCO is a joint venture between Sasol South Africa (SSA), Companhia Mocambiçana de Gasoduto and South African Gas Development Company. SSA owns 50% and the two partners hold 25% each. Following the sale of a 30% equity interest to a consortium comprising Reatile Group and the IDEAS Fund, managed by African Infrastructure Investment Managers, it will retain a 20% interest. SSA will continue to operate the pipeline.

Sasol’s agreements with ROMPCO to transport gas to Secunda would be unaffected and the tariffs remain according to existing agreements, which were approved by the national energy regulator NERSA.

The Sale Shares will, subject to certain adjustments, be sold for a consideration comprising an initial amount of R4.145-billion and a deferred payment of up to R1-billion payable if certain agreed milestones are achieved by 30 June 2024,” Paul Victor, Sasol’s chief financial officer said.
Despite the disposal, Victor said Sasol remained fully committed to its operations in Mozambique, which continued to be integral to its gas strategy.

The transaction is subject to a number of conditions, including regulatory and competition authority approvals. It expects it to become effective in the second half of the year.

Sasol’s shares closed 0.03% up at R237 on Friday.

Main Image; clubofmozambique