Sasol ditches funding plan to settle old BEE scheme debt

October 10, 2017

FIN24 / Oct 09 2017 07:56 / Staff Reporter

 

Cape Town – Sasol has ditched its preferred method to settle outstanding debt regarding the black economic empowerment scheme it is disbanding, it announced on Monday.

In September, Sasol said it will disband Sasol Inzalo when it matures next year and launch the R21bn Khanyisa empowerment scheme.

 

Sasol Khanyisa drew criticism for its complex and confusing structure, as well as the fact that shareholders would face further loss of value, City Press reported recently. To provide Khanyisa participants with value, Sasol was going to hand out R1.9bn in free shares to its employees and R1bn in free shares to ordinary black investors. Khanyisa will cost Sasol shareholders R7.3bn via a share-based payment expense.