Sasol Agrees Sale of Sodium Cyanide Business


Johannesburg, South Africa – Sasol South Africa has concluded an agreement to sell its sodium cyanide business to a South African, B-BBEE empowered subsidiary of Draslovka Holding a.s (“Draslovka”), a Czech-based company specialising in cyanide production, for a consideration of R1,46 billion, (subject to customary closing adjustments). The transaction is part of Sasol´s ongoing, strategy-aligned, asset divestment programme.

“Sasol has made progress on its expedited review of the business to consider how it can be most effectively positioned to be sustainable in a low oil price environment. Consistent with this approach, the expanded asset disposal process has yielded good interest in relation to a number of assets, despite the macro environment uncertainty,” said Sasol President and CEO, Fleetwood Grobler.

Draslovka is a Czech-based, privately-owned company, specialising in the manufacture, distribution, and application of specialty chemicals globally, particularly cyanide-based substances. The company has more than 100 years of experience in cyanide production and cyanide chemistry for use in synthesis, mining, and industrial and agricultural applications. It has operations in the Czech Republic, South Africa, Australia, New Zealand, and India.

Draslovka will take over full operational control of the cyanide business. Key feedstocks, utilities and site services will be supplied by Sasol on an arm’s length basis.  Draslovka will use its expertise in the cyanide business to bring new technologies and capabilities to the process, ensuring a continuous and stable supply of cyanide to the mining industry. Sasol also intends to explore the potential for business development opportunities by Draslovka which could result in further synergies at the site.

The transaction, which is expected to close in the first half of calendar year 2022, is subject to the fulfilment of various conditions precedent, including Competition Commission, South African Reserve Bank, license and permit regulatory approvals.

Sasol may, in this document, make certain statements that are not historical facts that relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, developments and business strategies. Examples of such forward-looking statements include, but are not limited to, statements regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return, executing our growth projects (including LCCP), oil and gas reserves and cost reductions, including in connection with our BPEP, RP and our business performance outlook. Words such as “believe”, “anticipate”, “expect”, “intend”, “seek”, “will”, “plan”, “could”, “may”, “endeavour”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors are discussed more fully in our most recent annual report on Form 20-F filed on 28 August 2018 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
Please note: One billion is defined as one thousand million. bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year 30 June. Any reference to a calendar year is prefaced by the word “calendar”. 

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *

14 + 6 =

seers cmp badge