Sasol Sells Stake in Mozambique Gas Power Plant

  • Petro-chemical’s giant, Sasol, has announced the sale of its shares (49%) to Azura Power Limited for the divestment of the Company’s full shareholding in CTRG, the gas-to-power plant located in Ressano Garcia, Mozambique.
  • Sasol has yet to announce a winning bidder for its stake in half of the 865-kilometer (538-mile) Rompco natural-gas pipeline that runs from Mozambique to South Africa.

The sale of its CTRG stake is subject to a number of conditions precedent, which include regulatory approval and the waiver of pre-emption rights held by Electricidade de Mocambique (EDM), the Mozambican state-owned electricity company.

The consideration will be approximately USD145 million for 49% and covers the equity and other shareholder claims that Sasol holds in CTRG. This will be subject to any relevant closing adjustments, including those in relation to working capital.

Rompco currently transports gas from the onshore Pande and Temane fields in Mozambique to Sasol operations in South Africa. After those resources are depleted, it could be filled again from LNG landing at a terminal planned in Maputo. Sasol has yet to announce a winning bidder for its stake in half of the 865-kilometer (538-mile) Rompco natural-gas pipeline that runs from Mozambique to South Africa.

Sasol expects the completion of about US$3.5 billion in asset sales by the end of the financial year as part of an effort to raise $6 billion that may include a rights issue depending on the ongoing success of the disposal process.

Author: Bryan Groenendaal

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