Sasol plunges after saying it needs to settle R12bn in debt

September 21, 2017

 Business Day / 20 SEPTEMBER 2017 - 17:39 / PAUL BURKHARDT

 

Sasol tumbled the most in 15 months on Wednesday, after the biggest producer of fuel from coal said it may sell about R13bn worth of shares to meet its obligation to repay debt owed by black investors.

 

The decline in the company’s stock since the mid-2014 slump in crude prices precludes payouts to more than 250,000 black South Africans who participated in the Inzalo transaction in 2008, and forces Sasol to settle about R12bn it owes. An equity issuance is the best financing solution, CEO Bongani Nqwababa said.