Sasol agrees to sell 30% interest in ROMPCO to an acquisition vehicle
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Energy and chemical company Sasol South Africa (SSA), a subsidiary of Sasol, has concluded a sale and purchase agreement (SPA), to sell a 30% equity interest in the Republic of Mozambique Pipeline Company (ROMPCO), subject to pre-emptive rights by other shareholders.
In a statement, Sasol said ROMPCO is a joint venture between SSA (50%), Companhia Mocambiçana de Gasoduto S.A. S.A.R.L (CMG) (25%) and South African Gas Development Company (SOC) Limited (iGas) (25%). The joint venture owns the 865km gas transmission pipeline from Mozambique to South Africa.
The company said it has agreed to sell the 30% interest in ROMPCO to an acquisition vehicle beneficially owned by a consortium comprising Reatile Group Proprietary Limited and the IDEAS Fund, managed by African Infrastructure Investment Managers Proprietary Limited.
The proposed transaction is subject to the waiver or exercise of pre-emptive rights held by iGas and CMG, as the other shareholders in ROMPCO.
The proposed deal is expected to become effective during the second half of the calendar year 2021.
Sasol group chief financial officer Paul Victor said: “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 June 30 2024”.
Victor added that Sasol remains fully committed to its operations in Mozambique, which continue to be integral to its gas strategy.
According to Sasol, it will retain a 20% shareholding in ROMPCO and will continue to operate and maintain the pipeline in terms of the commercial agreement between the two entities, which is independent of the proposed transaction.
“Sasol’s agreements with ROMPCO to transport gas to Secunda are unaffected, and the tariffs remain as per the said agreements, which were approved by the National Energy Regulator of South Africa (NERSA),” it said.
Sasol added that the proposed transaction would also be subject to the fulfillment of customary conditions precedent, including, among others, competition/anti-trust approvals in the relevant jurisdictions and all necessary consents of third parties, including government authorities.
BUSINESS REPORT ONLINE