https://newsletter.en.creamermedia.com
Africa|Business|Coal|PROJECT
Africa|Business|Coal|PROJECT
africa|business|coal|project

Sasol shareholders back JV with LyondellBasell for US project

Sasol shareholders back JV with LyondellBasell for US project

Photo by Bloomberg

20th November 2020

By: Reuters

  

Font size: - +

South Africa's Sasol said on Friday shareholders have approved a proposed agreement to form a joint venture with chemical company LyondellBasell Industries at its US Lake Charles Chemicals Project in a bid to pay down debt.

LyondellBasell agreed last month to acquire a 50% stake of Sasol's base chemicals business at Lake Charles for $2-billion and operate the newly formed joint venture.

As part of the agreement, the two companies will form a 50:50 joint venture which will take over the base chemicals business at Lake Charles. LyondellBasell will be the operator of the new JV firm.

Sasol, the world's top manufacturer of motor fuel from coal, has been battling high debt amid lower oil and chemicals prices and falling fuel demand due to a country-wide lockdown to prevent the spread of Covid-19.

Investors have been concerned by the company's rising debt level which stood at R189.7-billion for the year to June 30.

To tide over a debt crisis and repair its balance sheet, Sasol embarked on a three-pronged strategy this year which included disposal of assets, cash conservation efforts and a rights issue.

"Depending on the success of self-help measures, we will use that to inform on the ticket size of the rights issue," Sasol CFO Paul Victor told shareholders during a general meeting on Friday ahead of its annual shareholders meeting.

"We have reserved that decision until February... but it could also be zero."

Sasol shares were down 2.83% at 1200 GMT versus a broader market index down 0.13%.

Edited by Reuters

Comments

 

Showroom

Victaulic
Victaulic

Since 1919, Victaulic’s innovative solutions and design services continue to increase construction productivity and reduce risk, ensuring projects...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 13 December 2024
Magazine round up | 13 December 2024
13th December 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.209 0.297s - 190pq - 2rq
Subscribe Now