"These initiatives are aimed at reducing financing costs and improving the long-term
business benefits that will accrue to Tshwarisano's broad base of empowerment
shareholders," says Sasol CE Pat Davies, adding that for Sasol transformation in South
Africa is a strategic, business and moral imperative. “We aspire to advancing our
empowerment initiatives in ways that are sustainable, credible and of benefit to the Sasol
group, all our stakeholders, and the country as a whole," he adds.
Sasol planned to incorporate Tshwarisano into the envisaged Uhambo Oil, a proposed
joint venture company between Sasol Limited and Petronas International Corporation
Limited, which was turned down by the Competition Tribunal at the end of February 2006.
The intention from the start, however, was that if this Uhambo merged company was
disallowed, Tshwarisano would become a 25% shareholder in Sasol's liquid fuels
business.
The new Sasol Oil (Pty) Ltd board will comprise 12 directors – three directors from
Tshwarisano , six directors from Sasol and three executive directors from Sasol Oil. Their
names will be announced as soon as the board is properly constituted.
"Sasol Limited and Tshwarisano have entered into a landmark BEE transaction that has
been significantly facilitated by Sasol Limited regarding pricing and the financing of costs
that will allow real vesting of value to its BEE partners,” says Philip Reynolds of Nedbank
Capital Corporate Finance, joint lead adviser and arranger to Tshwarisano.
“The transaction incorporates a substantial, boadbased BEE element with women, rural
participants and credible business partners. This sets a new benchmark for BEE
transformation in South Africa, as envisaged by the Codes of Good Practise on Broad
Based Black Economic Empowerment," he adds.
“The Tshwarisano transaction represents the largest BEE transaction in the liquid fuels
industry and serves as a model for the structuring of sustainable and value creating