Sasol enters agreement for sale of BEE Solbe1 shares
DURBAN – JSE-listed chemicals and energy company Sasol has entered into a market making services agreement with Ngonyama Capital for the purchasing and selling of Sasol BEE ordinary (Solbe1) shares in the open market.
The group said yesterday that the objective of this agreement was to enhance the value proposition of the Solbe1 shares and increase the liquidity of Solbe1 shares in the open market.
“Under the agreement, which has been entered into for a period of three years and which may be terminated on notice by either party, Ngonyama Capital will be the beneficial owner of Solbe1 shares and will buy and sell Solbe1 shares in the open market as a principal, for its own account and sole risk and independent of and without influence by Sasol,” the group said.
Ngonyama Capital will purchase 100 000 Solbe1 shares in the open market within a period of six months from yesterday.
“In consideration for rendering the market making services under the agreement, Ngonyama Capital will be paid a fee calculated at a total of 15 percent, spread over the three-year period of the agreement, of the average daily net value of Solbe1 shares held by Ngonyama Capital,” the group said.
The group added that a break fee would be payable to Ngonyama if Sasol terminated the agreement without reason before the expiry of three years.
Sasol’s share price closed 0.93 percent lower at R411.68 on the JSE yesterday.
However, the Ngonyama Capital agreement comes after Sasol has been accused by an employee of contaminating the Vaal River with chemicals, which include vanadium. Vanadium may affect the central nervous system. An inquiry is underway.