Sasol unveils massive BEE deal

JOHANNESBURG – Sasol Ltd, the world’s top maker of oil from coal, unveiled the biggest affirmative action deal yet in South Africa as it posted a 10 per cent rise in annual headline earnings per share.

Sasol, which under its previous management attracted sharp criticism from the government for dragging its feet on Black Economic Empowerment, said yesterday it will sell a stake to black investors, staff and the public. Sasol said it will sell a 10 per cent stake to blacks for a total of 17,9 billion rand under the BEE programme, which aims to redress the exclusion of blacks from the economy under apartheid.”We want as many black South Africans as …possible, most of whom have never owned shares before, to become shareholders,” said Sasol Chief Executive Pat Davies.”Sasol has cheered up a soggy market,” Investec Asset Management’s Kevin de Villiers said.”They have posted results at the top end of their guidance, and it’s good they have come out with it (BEE), it’s a …cleaning up of the cupboard.”Since taking over from Pieter Cox, Davies has steered Sasol into an aggressive BEE path by hiring senior non-white and female managers and selling a stake to blacks for its key fuels unit, changing the image of a company previously a symbol of white male power that took root under decades of apartheid.Under the BEE deal, the black public will be able to buy up to three per cent of the issued share capital of Sasol, mostly black staff will buy four per cent and the rest will go to black groups.Sasol said whites below managerial level will be given a chance to take up a portion of shares under the four per cent stake set aside for staff, a decision agreed with unions, Davies said.Nampa-ReutersSasol said it will sell a 10 per cent stake to blacks for a total of 17,9 billion rand under the BEE programme, which aims to redress the exclusion of blacks from the economy under apartheid.”We want as many black South Africans as …possible, most of whom have never owned shares before, to become shareholders,” said Sasol Chief Executive Pat Davies.”Sasol has cheered up a soggy market,” Investec Asset Management’s Kevin de Villiers said.”They have posted results at the top end of their guidance, and it’s good they have come out with it (BEE), it’s a …cleaning up of the cupboard.”Since taking over from Pieter Cox, Davies has steered Sasol into an aggressive BEE path by hiring senior non-white and female managers and selling a stake to blacks for its key fuels unit, changing the image of a company previously a symbol of white male power that took root under decades of apartheid.Under the BEE deal, the black public will be able to buy up to three per cent of the issued share capital of Sasol, mostly black staff will buy four per cent and the rest will go to black groups.Sasol said whites below managerial level will be given a chance to take up a portion of shares under the four per cent stake set aside for staff, a decision agreed with unions, Davies said.Nampa-Reuters