South Africa: Sasol denies downstream assets sale talks
Following media reports that Sasol was in talks with the state-owned Central Energy Fund (CEF) to divest its 410 retail convenience centres in South Africa.
Sasol is not selling its fuel retail business of 410 retail convenience centres in South Africa, which accounts for 11% of the country’s regulated retail market, and is not in talks with any interested party to divest its fuel retail business.
The news comes following media reports that Sasol was in talks with the state-owned Central Energy Fund (CEF) on the possible deal in the face of the Covid-19 financial fallout, which has seen global oil prices plummet.
“Sasol is not divesting its downstream fuel retail business as part of its ongoing asset disposal process,” said the group in the release.
“While Sasol is in the process of reviewing opportunities in this regard, it is important to note that we remain committed to our strategy, which includes growing our fuel retail presence in South Africa,” said Sasol Chief Financial Officer, Paul Victor.
“Although we are regularly approached by interested parties to acquire or partner with us in the retail network space, we are not in discussions with any such parties to divest or partner in our downstream fuel retail business. While recent events have created significant short-term challenges, we are confident our business is fundamentally robust and we have a clear pathway to resume value creation,” said Victor.
CEF also dismissed the news in a statement, describing reports on such possible deal as “malicious” and “bordering on sensational.”
“At no stage, did the CEF Board nor its chairperson Dr Mnyande publicly announce that it is negotiating with Sasol to buy its petrol stations,” the CEF said.
Sasol announced that the company’s focus remains on improving margins by looking for higher value markets for their existing production of fuels. "This means both organic retail growth, by increasing our retail site development and conversion of sites to the Sasol brand, and possible small scale acquisitions,” Victor explained.
