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Sasol Headquarters in Johannesburg
Sasol announced on Tuesday that it had agreed to sell its 50% stake in its US-based HDPE joint venture Gemini to its partner INEOS for US $ 404 million (R6.2 billion at the current exchange rate).
Sasol Chairman and CEO Fleetwood Grobler said in a statement that the sale continued Sasol’s move to focus on specialty chemicals markets.
“We are pleased that our valued partner INEOS is acquiring Sasol’s stake in Gemini HDPE JV and we appreciate our productive partnership over the past six years,” he said.
Michael Nagle, CEO of INEOS O&P USA, described Gemini as a “world class asset” in a separate note and said it was well positioned to help the group meet growing demand from our customers.
The proceeds from the transaction will be used to pay Sasol’s short-term debt obligations. The Johannesburg-based petrochemical company has previously said it is looking to sell assets to pay off debt and sharpen its strategic focus. As Fin24 reported in August, it ended a turbulent year with a loss of R91.3 billion.
The Gemini transaction is scheduled to close at the end of 2020. Once completed, it will consolidate 100 percent of Gemini’s ownership and all marketing under INEOS, Sasol said.
Meanwhile, in mid-November, Sasol announced that its long-delayed Lake Charles chemicals project in the US was fully operational.
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