By Cecilia Butini
Sasol Ltd. said Friday that its subsidiary Sasol South Africa Ltd. has entered into a sale-and-purchase agreement to sell a 30% interest in the Republic of Mozambique Pipeline Investments Co., known as Rompco.
Shares will be sold for a consideration comprised an initial amount of 4.15 billion South African rand ($294 million) and a deferred payment of up to ZAR1 billion payable if certain milestones are achieved by June 30, 2024.
As per the agreement, Sasol South Africa will retain a 20% shareholding in Rompco and will continue to operate and maintain the pipeline under the terms of a commercial agreement between Sasol and Rompco, which is independent of the divestment transaction.
The South African chemicals-and-energy group said the sale is to a consortium known as the Reatile consortium and comprising Reatile Group Proprietary Ltd. and the IDEAS fund, managed by African Infrastructure Investment Managers Proprietary Ltd.
The transaction should close in the second half of 2021, pending competition and government approvals, it said.
Write to Cecilia Butini at email@example.com
(END) Dow Jones Newswires