From Inzalo to Khanyisa

At Sasol, transformation is a business, legal and ethical imperative which we are committed to contributing to in a meaningful and sustainable way. It was within this context that Sasol Inzalo was created in 2008 with the objective to provide ownership opportunity in Sasol to our employees, the Black public, selected companies and community trusts. With the unwind of Sasol Inzalo in June 2018 and introduction of Sasol Khanyisa, Inzalo shareholders and Groups were requested through various communication efforts to make decisions regarding their participation in Sasol Khanyisa.

Sasol Inzalo Public Participation

Sasol Inzalo Public participants were offered the opportunity to take part through either a fully paid-up cash offer or a funded offer, which the majority of participants chose. Shareholders in Sasol Inzalo Public funded offer paid either 5 or 10 percent of the initial share purchase price and various forms of funding were used to fund the Sasol Inzalo transaction.

As with any loan, interest has been added to the outstanding amount until the funding is settled. However, Sasol Inzalo’s success was linked to the Sasol share price, which was R366 per share at the time of Sasol Inzalo’s launch. The objective of Sasol Inzalo was to settle the funding through the value gained from the growth in the share price, and then to distribute the remaining value to its participants.

However, the Sasol share price has been impacted by both high and low crude oil and commodity prices, leading to the situation where the growth in the share price has not been enough to settle the outstanding funding. As a result, no net value was created from Sasol Inzalo for Sasol Inzalo Public funded participants.

With the unwind of Sasol Inzalo, Sasol BEE Ordinary (SOLBE1) shareholders had the opportunity to keep their shares in the empowerment segment of the Johannesburg Stock Exchange (JSE) and participate in Sasol Khanyisa.

Sasol Inzalo Public Cash Offer Participants (SOLBE1 shareholders)

• Those that decided to leave the empowerment segment of the JSE automatically received Sasol Ordinary (SOL) Shares equal to the number of their Sasol BEE Ordinary (SOLBE1) shares, but are not part of Sasol Khanyisa and did not receive any additional bonus shares.
• Those that chose to remain on the empowerment segment of the JSE received one bonus Sasol BEE Ordinary (SOLBE1) share for every four SOLBE1 shares owned. Further, they were invited to participate in Sasol Khanyisa and received one Sasol Khanyisa public share for every Sasol Inzalo share held, at no cost. In addition they received one SOLBE1 share, tradable on the empowerment segment of the JSE, for every 10 Sasol Khanyisa Public shares owned.

Sasol Inzalo Public Limited (SIPBEE Shareholders) or funded cash offer participants

• Those that decided to leave the empowerment segment of the JSE shares will be delisted in September 2018.
• Those that chose to remain on the empowerment segment of the JSE received one bonus Sasol BEE Ordinary (SOLBE1) share for every ten SIPBEE shares owned. If you owned SIPBEE shares you automatically participated in Sasol Khanyisa unless you opted out.

In September 2018 when Sasol Inzalo comes to an end, your SIPBEE shares will cease to exist as these shares will be delisted from the Johannesburg Securities Exchange (JSE). Please also note that all SIPBEE shares will be suspended from trading on the JSE after the launch of Sasol Khanyisa.

As your SIPBEE shares were funded by external banks, any outstanding funding will first need to be settled in September 2018 before any value can be distributed to SIPBEE shareholders. Based on the current share price there is not likely to be any value distributed to shareholders after the funding has been settled. 

The Sasol South Africa shares that the new Sasol Khanyisa Public indirectly hold will be funded by Sasol.

In 2028 (or earlier if the funding is settled before that date), your 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.

Sasol Inzalo Groups Participation

Various members of the South African Black public participated through 54 different Sasol Inzalo Groups. These selected groups comprised Sasol customers, suppliers, franchisees, church groups, NGOs and stokvels. Shareholders in Sasol Inzalo Groups paid either 5 or 10 percent of the initial share purchase price and various forms of funding were used to fund the Sasol Inzalo transaction.

As with any loan, interest has been added to the outstanding amount until the funding is settled. However, Sasol Inzalo’s success was linked to the Sasol share price, which was R366 per share at the time of Sasol Inzalo’s launch. The objective of Sasol Inzalo was to settle the funding through the value gained from the growth in the share price, and then to distribute the remaining value to its participants. However, the Sasol share price has been impacted by both high and low crude oil and commodity prices, leading to the situation where the growth in the share price has not been enough to settle the outstanding funding. As a result, no net value was created from Sasol Inzalo for Sasol Inzalo Groups participants.

Sasol Inzalo Groups Participants

• Those that decided to leave the empowerment segment of the JSE shares will be delisted in September 2018.
• Those that chose to remain on the empowerment segment of the JSE received one bonus Sasol BEE Ordinary (SOLBE1) share for every ten SIPBEE shares owned. If you owned SIPBEE shares you automatically participated in Sasol Khanyisa unless you opted out