The South African and Mozambican states offer themselves 30% of Sasol's shares in the ROMPCO gas pipeline
(Ecofin Agency) - In May, Sasol concluded the sale of 30% of its 50% in the Rompco gas pipeline with a consortium. But this operation will not succeed, because the governments of the two host countries of the pipeline have decided to exercise their right of first refusal in the operation.
On June 27, the public oil entities of South Africa and Mozambique: Central Energy Fund (CEF) and Empresa Nacional de Hidrocarbonetos (ENH) respectively, announced the acquisition of the 30% stake offered for sale by Sasol on the Rompco gas pipeline. They thus exercise their right of first refusal, which cancels the previous sale transaction concluded between Sasol and a consortium composed of Reatile Group Proprietary Ltd and Ideas Fund.
As a reminder, the amount of this initial sale is 361 million dollars. Thanks to this operation, the two States each increase their shares in the gas pipeline to 40%. Before, they each controlled 25%. They thus share equally the 30% sold by Sasol. The latter retains the remaining 20%. Financial details related to the deal have not been released.
" There has been a concerted effort to accelerate the acquisition of these shares, which is a hallmark of the group's energy value chain investment strategy aimed at reviving the South African economy and create the jobs we so badly need", commented Ishmael Poolo, CEO of CEF.
Estevao Pale, CEO of ENH, added that "the fact that the two governments are majority shareholders of the cross-border pipeline is strategic, as the pipeline is the sole source of gas for the South African market. ".
Olivier de Souza
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14/05/2021 - Mozambique/South Africa: Sasol sells 30% of its interest in the Rompco pipeline for 361 million dollars
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