BUSINESS REPORT / 21 SEPTEMBER 2017, 06:00AM / LUYOLO MKENTANE AND KABELO KHUMALO
JOHANNESBURG - The share price of petrochemicals giant Sasol on Wednesday tanked 7.32% after it announced the replacement of its debt-ridden black empowerment scheme Inzalo and replaced it with its empowerment structure Khanyisa in a deal it values at R21bn.
The Sasol Inzalo black empowerment scheme, which was valued at R28bn when it was implemented in 2008, also saw its share price decrease 16.17% yesterday. The JSE launched a BEE board in 2011.
Sasol Inzalo, which is expected to unwind in June 2018, has a R11.9bn debt. In disbanding Inzalo, Sasol will write off the internal debt of the scheme, which Sasol itself financed. It will then continue to repay the banks until Inzalo's debt is serviced.