- South Africa’s petro-chemical’s giant Sasol has concluded a sale of 30% interest in Republic of Mozambique Pipeline Company (ROMPCO), to Reatile Group and the IDEAS Fund managed by African Infrastructure Investment Managers.
Sasol will retain a 20% shareholding in ROMPCO and will continue to operate and maintain the pipeline in terms of the commercial agreement between Sasol and ROMPCO, which is independent of the Proposed Transaction. Sasol’s agreements with ROMPCO to transport gas to Secunda are unaffected by the Proposed Transaction and the tariffs remain as per the said agreements, which were approved by the National Energy Regulator of South Africa (NERSA) (or are approved by NERSA from time to time).
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.
The Proposed Transaction is subject to the pre-emptive rights on the Sale Shares held by the other shareholders of ROMPCO, being the South African Gas Development Company (SOC) Limited and Companhia Moçambicana de Gasoduto S.A.R.L.
Subject to preemptive conditions, the sale is expected to become effective during the second half of calendar year 2021.
The Proposed Transaction is part of Sasol’s strategy-led divestment programme. Sasol remains fully committed to its operations in Mozambique, which continue to be integral to Sasol’s gas strategy.
Author: Bryan Groenendaal