Sasol dives further on the JSE over cash-raising plan

JOHANNESBURG – Sasol, the JSE’s biggest casualty of falling global oil prices as a result of the coronavirus outbreak, slumped further yesterday after it announced measures aimed at generating $6billion (R99.18bn) by the end of its 2021 financial year.

The troubled petrochemicals giant fell 17.99percent to R36.69 a share on the JSE, wiping more than R55bn off its market capitalisation just hours after it unveiled a planned $6bn cash-raising initiative by the end of the 2021 financial year.

Sasol said it would enter into partnerships for its base chemicals business in the US through asset sales and generate another $2bn from self-help management actions.

Chief financial officer Paul Victor said the equity raise would be assessed depending on the progress made through the asset disposal programme.

“The equity raise is the last resort for us,” adding that cutting of jobs would also be a last resort, Victor told analysts and journalists during a press conference late yesterday. He said that the group had identified several assets that would be put up for sale.