Jaded Sasol shareholders likely to approve Lake Charles deal

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Jaded Sasol shareholders likely to approve Lake Charles deal

Published Date: 2020-10-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Jaded Sasol shareholders likely to approve Lake Charles deal

Shareholder activist Theo Botha says the transaction will probably go ahead as Sasol battles to reduce its debt.

Sasol's shares have battled to move higher after falling more than 3% on the news earlier this month that it was selling a 50% stake in the Base Chemicals business at its Lake Charles Chemicals Project in the US. The sale is part of the energy and chemicals group's strategy to reduce debt significantly by next June.

By Friday, Sasol's stock was back almost where it started the week at just above R124 a share. It fell a further 1.6% yesterday to R122.04, with recent hurricanes in Louisiana, where Lake Charles is situated, also impacting the project.

The energy and chemicals group will form a joint venture with LyondellBasell Industries, which is paying $2 billion for the stake. The deal excludes Sasol's US performance chemicals business as well as its legacy base chemicals operations in that country.

Despite the tepid response to the sale announcement, Proxy View's Theo Botha believes shareholders will approve the transaction when they are asked to vote on it at a general meeting on 20 November. You can watch the interview with Theo here.





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