A decline in the company’s stock since the mid-2014 slump in crude prices precluded payouts to more than 250,000 black South Africans who participated in the Inzalo transaction in 2008, forcing Sasol to settle the more than R12 billion they owe.
Sasol won’t pursue the preferred funding option announced on September 20 “of issuing up to 43 million ordinary shares through an accelerated book-build process” and is considering other options, it said in a statement on Monday.
“Sasol’s intention is to mitigate the amount of shareholder dilution whilst still maintaining Sasol’s investment grade credit rating.”
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Sasol stock fell the most in 15 months after the announcement of the replacement black investor plan and accelerated book build. Alternatives are being sought “following extensive engagement with shareholders,” it said. The shares climbed as much as 2.2 percent on Monday, and traded 1.5% higher at R390.97 as of 10:20 a.m. in Johannesburg.