FAQs

We have created a useful FAQs page which we hope will make it easier to find topic-related answers to your most frequently asked questions. In addition to the current FAQs, we are continuously updating shareholders on answers to questions that they may have and adding these, if applicable.

Share Investing

What is a share?

Shares represent ownership of a company. When an individual buys shares in a company, they become one of its owners.

What does it mean to be a shareholder?

By owning shares individuals share in the risk and rewards of being a shareholder. They are entitled to receive dividends per share, if any are declared, but their investment can also be at risk if the business results decrease. Shareholders have rights and responsibilities and are given the opportunity, for example, to cast their vote on resolutions during the Annual General Meeting or elect who sits on the Board.

What is a dividend?

A dividend is a payment to shareholders of a portion of a company’s earnings. This portion is decided by the board of directors after evaluating commitments and obligations that the company has to pay in future.

What is a SOLBE1 shareholder?

A SOLBE1 shareholder is a member of the South African Black public community who owns Sasol Ordinary BEE (SOLBE1) shares. These shares are listed on the BEE segment of the JSE and can only be brought or traded among Black South Africans. SOLBE1 shares are traded at a lower marker determined price because there are currently fewer buyers in the market and smaller volumes traded.

What is a SOL shareholder?

A SOL shareholder owns Sasol Ordinary (SOL) shares that are listed on the JSE. SOL shares can be brought or traded by anyone and are traded at a higher market determined price because there are more buyers in the market and larger volumes traded.

What does it mean to be a shareholder?

By owning shares individuals share in the risk and rewards of being a shareholder which means they own a portion of a company. They are entitled to an equal per share distribution in any profits, if any are declared, in the form of dividends, but their investment is at risk if the business results decrease. In addition, they are provided with the rights and responsibilities of being a shareholder and are given the opportunity to cast their vote on resolutions during the Annual General Meeting.

What is the difference between SOLBE1 and SOL shares?

  • A SOL share or a Sasol Ordinary share, is a share in Sasol Limited that is listed on the Johannesburg Stock Exchange (JSE). It is the most common Sasol share that you can track to judge the performance of Sasol as a company.
  • SOL shares trade on the main board of the JSE. There are no restrictions on who purchases and sells SOL shares.
  • A SOLBE1 share or Sasol Ordinary BEE share is a share that trades on the Empowerment Segment of the JSE and is only traded among Black South Africans as defined by the BEE codes. SOLBE1 shareholders are entitled to the same dividends as SOL shareholders, but SOLBE1 shares currently trade at a slight discount to SOL shares as they were originally listed at a lower price to accommodate liquidity on the Empowerment Segment of the JSE.
  • SOLBE1 shares may only be sold to and bought by “BEE Compliant Persons” as defined in the JSE Listings Requirements. For that reason, SOLBE1 shares trade on the BEE segment of the JSE.

Watch a video that explains the differences between SOL and SOLBE 1 shares

Download a table that explains the differences between Sasol’s share types

Why does a SOLBE1 share trade at a lower price than a SOL share?

SOLBE1 shares trade at a liquidity discount to SOL shares because there is currently less liquidity in the market (fewer buyers and sellers), leading to smaller volumes being traded.

Selling your SOLBE1 shares

How do I trade my shares?

To sell your SOLBE1 shares you need to contact Computershare by telephone or in person and ask them to place a sell instruction. A call centre agent will verify your account details and the number of shares you hold, the sale process will then commence. Once you confirm the final number of shares you want to trade, the shares are then listed and the sale process. Your shares will then be listed for sale for a period of time until a willing buyer is matched. If a buyer is matched with a seller a sale reference will be made available. If a buyer is matched with a seller a sale reference will be made available. If no buyer is matched the shares, you will retain your shares until such time as a buyer can be found.

How are the shares sold once I have placed an order?

Once an instruction is received, Computershare will aggregate the orders for the day and place a single order with the nominated stockbroker. The stockbroker then places the sell order “at best”.

Does that mean my shares can be sold at any price?

No, the broker will not allow shares to be sold at any price, as this avoids a crash. The broker will contact you through Computershare to find out whether you are prepared to sell at a price that is much lower (around 20% lower) than the quoted price when you placed your order to sell.

What is a match?

A match occurs when the seller’s shares are paired with a willing buyer’s order to purchase shares. There could be an exact match when 30 shares on offer is matched with a bid for 30 shares but there could also be a partial match where a portion of the shares on offer are sold to a bidder at the ruling price or all of the seller’s shares on offer are sold to a buyer who is bidding for a larger number of shares at the ruling price.

Who determines the matching price?

The market players which include buyers and sellers determine the market price. This is a supply and demand situation. The market operates under JSE surveillance and the trades are matched automatically by the JSE’s trading system.

Can I retract my instruction to sell?

All instructions are irrevocable but the trade can be retracted in the event where the nominated Broker is unable to process the trade due to insufficient buyers in the market or reasonable bid price.

How long before the sale of the shares is reversed (when you can’t find a buyer)

The trade will be open in the market for a period of 30 days before it can be automatically removed. However the client can retract within the 30 day period.

I don’t want my shares to sell at a lower price than the listed price?

The nominated Broker will obtain the best reasonably available price in the market at the time of dealing. If no such price exists, the Broker will take reasonable care to carry out the instruction at the price which is fair and reasonable.

Sasol Khanyisa

Who is part of the Sasol Khanyisa transaction?

The eligible participants will be comprised of:

  • Eligible Sasol employees (~9,2% of SSA);
  • Existing Sasol Inzalo Public and Groups shareholders (~9.2% indirectly of SSA); and
  • Existing Black Sasol shareholders that trade on the empowerment segment of the JSE (~2%).

How are Black people defined in the Sasol Khanyisa Transaction?

As per the DTI codes, the Sasol Khanyisa transaction defines “Black people” as African, Indian, Coloured (including Chinese) who are citizens of South Africa –

  • by birth or descent; or
  • who became citizens of South Africa by naturalisation before 27 April 1994;
  • or who would have been entitled to acquire citizenship by naturalisation prior to that date.

How is Sasol Khanyisa being funded?

Sasol Khanyisa is fully vendor funded by Sasol, therefore there is no third-party funding required for the transaction. As a result, there will no external funding, and no cash flows out of Sasol. In 2028 (or earlier if the funding is settled before that date), Sasol Khanyisa public shares will be exchanged for SOLBE1 shares on a fair value for value basis which you may choose to keep or sell.

What is the duration of Sasol Khanyisa?

  • For eligible Inzalo participants who are still employed at the time that we implement Khanyisa, rights to shares will vest in 2021
  • For Black participants internally and externally, all “rights to shares” will be exchanged for Sasol shares listed on the empowerment segment of the JSE in 2028 or earlier if funding is settled before that date..
  • A value-for-value exchange from Sasol Khanyisa Ordinary shares to Sasol BEE Ordinary (SOLBE1) shares trading on the JSE Empowerment Segment should assist in ensuring that 25% of Sasol South Africa (SSA) remains empowered.
  • SOLBE1 shares can only be traded amongst Black participants, so even when existing SOLBE1 shareholders sell their shares, SSA will still be able to track and retain its required 25% B-BBEE ownership credentials.

How does Sasol Khanyisa assist in creating net value for its participants?

  • The initial step is to grant participants a shareholding in Sasol’s South African businesses (except Sasol Oil and Sasol Mining, both of which are separately empowered). Sasol South Africa (SSA) houses our Synfuels, chemicals and gas businesses, which are our most cash generative entities, placing Sasol Khanyisa as close to the cash flows of the businesses as possible, i.e. at operating asset level. This gives Sasol more control over the management of Sasol Khanyisa’s debt.
  • This is one of the key lessons learned from our analysis of B-BBEE transactions in South Africa and will create net value to the extent that vendor financing should probably be repaid within 10 years (as per base case assumptions).
  • Subsequent to this, participants will exchange their shareholdings for value equivalent shareholdings in Sasol Limited’s SOLBE1 shares, thereby allowing for monetisation of their shareholding without compromising Sasol’s B-BBEE credentials.
B-BBEE Transformation

Why is transformation so important to South Africa and Sasol?

  • Economic transformation and inclusive growth, are essential for South Africa’s long term sustainability and success. Broad-Based Black Economic Empowerment (B-BBEE) is a key enabler of this transformation.
  • At Sasol, transformation is a strategic, business and social imperative which we are committed to contributing to in a meaningful way. We believe that driving transformation across our South African businesses’ will enhance our ability to deliver superior returns to shareholders and stakeholders and deepen our commitment to South Africa’s national objective of redressing the inequalities of our country’s past.

What is the objective of B-BBEE?

B-BBEE is aimed at redressing the imbalances of the past by seeking to substantially and equitably transfer the ownership, management and control of South Africa’s financial and economic resources to the majority of its citizens. It seeks to ensure broader and meaningful participation in the economy by Black people to achieve sustainable development and prosperity.

How are Black people defined in the Sasol Khanyisa Transaction?

The definition of “Black people” is contained in the B-BBEE Act, which currently means African, Indian, Coloured (including Chinese) who are citizens of South Africa –

  • by birth or descent; or
  • who became citizens of South Africa by naturalisation before 27 April 1994;
  • or who would have been entitled to acquire citizenship by naturalisation prior to that date.

Why does B-BBEE favour African, Indian and Coloured (including Chinese) racial groups over others and why do White employees and Foreign Nationals not qualify for the 10 year Khanyisa transaction?

  • Black Economic Empowerment (BEE) is a racially selective programme launched by the South African government to redress the inequalities of Apartheid by giving Black South African citizens (African, Indian, Coloured (including Chinese)) economic privileges previously not available to them under Apartheid (BEE Commission Report, 2011).
  • B-BBEE does not favour one race group over another. It is essentially an economic growth strategy, targeting the South African economy’s weakest point: inequality.
  • Therefore, White employees and Foreign national employees are excluded from the 10 year Khanyisa transaction.

Is B-BBEE reverse racism?

  • B-BBEE is not reverse racism; its objective is aimed at redressing the imbalances of the past.
  • Sasol does not tolerate unfair discrimination but BEE is a form of fair discrimination which is protected by our Constitution and the law of the country.
  • In 1994, the economy was, to a large extent, in the hands of the minority group being White citizens, which constituted 11% of the population at the time. It is not sustainable to exclude, or partially exclude, 90% of the population from contributing to the economic success of South Africa. Hence, we as a nation need to put in place measures to accelerate the participation of South Africans who were placed on the back foot so that all South African citizens can equally contribute to the success of our country’s economic growth and progress. In addition, the Labour Relations Act makes employment equity the only legal form of discrimination in South Africa.
  • The programme does not aim to take wealth from one race group and give it to another. It is essentially an economic growth strategy, targeting the South African economy’s weakest point: inequality.

What are the B-BBEE Codes of Good Practice?

Sasol has taken an integrated approach to accelerate our transformation strategy across each of the prescribed codes.

  • Equity ownership;
  • Management control;
  • Skills development;
  • Socio-economic development;
  • Enterprise and supplier development; and
  • Preferential procurement

What is Sasol doing to improve its B-BBEE accreditation?

  • As a company proudly rooted in our South African heritage, we recognise that transformation is a key enabler for economic and inclusive growth. We have adopted a firm empowerment strategy to improve our contributor level status.
  • Sasol is progressing on a number of initiatives to improve its contributor level under the Revised Codes of Good Practice. From FY18 (i.e. June 2017) Sasol aims to improve by at least one contributor level per annum to achieve at least a Level 4 by 2020.
  • A dedicated Executive Mandating Committee under the guidance of an advisory committee of the Board, drives and monitors the achievement of the empowerment objectives under the Revised Codes.

How does Sasol Khanyisa fit in under the Boards mandate of achieving at least a Level 4 B-BBEE rating by FY20?

  • As the Sasol Inzalo scheme unwinds in June 2018 (after a 10-year period), Sasol is required to implement another B-BBEE transaction. A B-BBEE ownership transaction is unavoidable if Sasol wishes to maintain a B-BBEE status of Level 6 or better.
  • Sasol Inzalo and our new Sasol Khanyisa transaction will assist Sasol in achieving B-BBEE ownership credentials on the ownership element of the B-BBEE scorecard and meet the net value sub-minimum criteria.
  • Sasol Khanyisa is ultimately intended to achieve an effective (direct and indirect) Black ownership of approximately 25% in Sasol South Africa (“SSA”), currently a wholly-owned subsidiary of Sasol.
  • Based on current assumptions Sasol Khanyisa will have a direct ownership of Sasol South Africa to the effect of approximately 18.4%, on the ownership element.

Where does Sasol Khanyisa fit in under the B-BBEE Codes?

  • Sasol Khanyisa fits primarily under the Ownership element of the B-BBEE Codes. The Ownership element is comprised of 25 points, broken down into:
    • Economic and voting rights, which counts for 17 points; and
    • Net value realisation, which counts for 8 points.
  • Ownership has become an even more important requirement necessitating South African companies to assess their structures and strategies in order to remain compliant.
  • In addition, Ownership is considered a “Priority Element” under the revised Codes and non-compliance with the sub-minimum requirement stipulated by the Codes will result in a company’s rating being further discounted by one full level.
  • Sasol Khanyisa is a key enabler to ensuring the long-lasting ownership of Sasol by Black South Africans.

Should B-BBEE not end now since it has been running for long enough to empower the generation impacted by Apartheid?

  • The impact of the exclusion from economic participation of many generations will ripple into the generations that follow. The impact of Apartheid cannot be rectified as part of a once-off exercise, it requires an on-going commitment until such time that economic access is proportionately allocated to all South Africans.
  • Progress has been made over the years in undoing the legacy of the past. However, we still have not reached a point where all South Africans have access to the same economic opportunities and the economy has not yet been transformed. B-BBEE is an evolutionary process and legislation is continually updated to make sure that transformation are effective.

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