Sasol's South African Unit To Sell Separation Units In Secunda To Air Liquide

(RTTNews) - Sasol (SSL) announced Wednesday that its subsidiary Sasol South Africa Limited or SSA has signed an exclusive negotiation agreement with Air Liquide for the sale of its sixteen air separation units located in Secunda.

The units will be sold to Air Liquide Large Industries South Africa Proprietary Limited. The proceeds will total approximately R8,5 billion.

The transaction remains subject to further due diligence, finalisation of relevant definitive agreements and associated internal and external approvals, including the Competition Commission and the South African Reserve Bank.

The companies aim to negotiate final agreements by mid-August, and a further announcement will be made at that time.

The transaction is currently expected to close within financial year 2021.

The air separation units, which have a capacity of up to 42 000 tons per day, provide oxygen for Sasol's fuels and chemical production processes in Secunda. It also produces various other gases utilised at the site.

Following the deal, Air Liquide will supply the gases to SSA's operations under a long-term gas supply agreement.

Sasol said the sale is part of its accelerated divestment programme.