UPDATE 1-South Africa's Sasol to sell 30% stake in Mozambique's ROMPCO for $364 mln

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UPDATE 1-South Africa's Sasol to sell 30% stake in Mozambique's ROMPCO for $364 mln
Credit: © Reuters.

(Adds details from statement)

JOHANNESBURG, May 14 (Reuters) - South Africa's Sasol Ltd SOLJ.J said on Friday it was selling a 30% stake in the Republic of Mozambique Pipeline Investments Company (ROMPCO) for up to 5.145 billion rand ($364 million) to a consortium that included Reatile Group.

The petrochemical firm's subsidiary Sasol South Africa Ltd will retain a 20% stake in ROMPCO and keep operating and maintaining the pipeline under a commercial pact with it, the company said in a statement.

The stake, subject to certain adjustments, will be sold for a consideration comprising an initial amount of 4.145 billion rand and a deferred payment of up to 1 billion rand payable if certain agreed milestones are achieved by 30 June 2024, Sasol said.

"The proposed transaction is part of Sasol's strategy-led divestment programme. Sasol remains fully committed to its operations in Mozambique, which continue to be integral to Sasol's gas strategy," the company said.

"The... transaction is subject to the pre-emptive rights on the sale shares held by the other shareholders of ROMPCO, being the South African Gas Development Company (SOC) Limited and Companhia Moçambicana de Gasoduto S.A.R.L."

Sasol will sell the stake to an acquisition vehicle beneficially owned by a consortium, comprising Reatile Group Proprietary Ltd and the IDEAS Fund managed by African Infrastructure Investment Managers Proprietary Ltd.

It added that its agreements with ROMPCO to transport gas to Secunda in the Mpumalanga province of South Africa are unaffected by the proposed deal and the tariffs remain as per the agreements.

($1=14.1164 rand)

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