Sasol announces plan to allay investor jitters

JOHANNESBURG – Petrochemicals giant Sasol yesterday moved to allay investor jitters amid the continued bloodbath on its shares.

The company said it had a plan to mitigate the impact of the weaker oil price, including prioritising a potential equity issue to manage its near-term debt covenant constraints.

But the news failed to stop the continuing free-fall of its shares, which wiped a further R7.71billion off its stock.

In the past five days alone, Sasol has lost nearly 80percent of its market cap.

The group, which has an R121bn debt burden, closed at R37.24 a share, down 29.36percent.

Source: iol.co.za