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Offer:Sasol Khanyisa Overview
Sasol Khanyisa, Sasol’s new Broad-Based Black Economic Empowerment (B-BBEE) ownership structure. A new B-BBEE transaction designed to incorporate what is considered to be the most appropriate and best features.
| 🔎 Company | 🥇 Sasol |
| 🌎 Country of Operation | South Africa |
| ⚙️ Operational | 22 Countries |
| ✅ Supplies | 100+ Countries |
| 📌 Products | Chemicals Energy Substainable Aviation Fuel |
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RECOMMENDED JSE BROKER
🛡️ Trust Score
97%
Avatrade - #1 JSE Trading Platform
- Time to open Account - Only 12 Hours
- Low Commissions
- Invest in any JSE Top 40 Share
Sasol Khanyisa Overview – 5 Key Point Quick Overview
- ✅ What is Sasol Khanyisa?
- ✅ Eligible Participant Groups
- ✅ Sasol Khanyisa Ownership and Group Structure
- ✅ Sasol BEE Ordinary Shareholders (SOLBE1)
- ✅ Benefits of Sasol Khanyisa
What is Sasol Khanyisa?
The verb “Khanyisa,” which means “to shine a light on,” is of Zulu origin. Therefore, when Sasol created Sasol Khanyisa, the firm studied several of the largest B-BBEE deals in South Africa to determine which elements would be most useful.
When fully implemented, Sasol Khanyisa aims to increase Sasol South Africa, a wholly owned subsidiary of Sasol, to at least 25% effective (direct and indirect) B-BBEE ownership. On 1 June 2018, Sasol unveiled Sasol Khanyisa; to date, more than 230,000 shareholders are part of the initiative.
Eligible Participant Groups
Through Black South African ownership of Sasol, Sasol Khanyisa promotes long-term, transformative change.
Eligible participants will fall under the following categories:
- Employees of Sasol who qualify include:
- Eligible Inzalo employees.
- Black employees whom Sasol permanently employs.
- Existing Sasol Inzalo shareholders.
- Existing Black Sasol shareholders who participate in trades on the empowerment segment on the Johannesburg Stock Exchange (JSE).
- Community participants who hold indirect interest via the Sasol Foundation will be considered.
In contrast to the previous Sasol Inzalo Public ownership model, the new Sasol Khanyisa ownership model does not rely on the share price of Sasol Limited to be successful; rather, it will utilize most dividend streams from Sasol South Africa to repay the financing cost. Sasol Shares (SOLBE1) can be bought with FNB, ABSA, Capitec Bank, EasyEquities, Nedbank, and Standard Bank.
Sasol’s ownership model is set up such that, after ten years, after the financing has been returned, Sasol South Africa shares may be swapped for Sasol BEE Ordinary (SOLBE1) shares listed on the empowerment portion of the JSE.
The JSE has an Empowerment Segment designed to meet the specific needs of BEE share schemes, where participants may trade stocks in a regulated and open market. As a bonus, owners will be able to realize the value of their assets on a public trading market thanks to this listing.
The shares of Sasol South Africa, a wholly owned subsidiary of Sasol Limited, will effectively be owned by Sasol Khanyisa. Sasol’s main operational unit is Sasol South Africa, which is now valued at R73 billion.
In addition, shareholders must note that:
- Sasol will pay R320 per share for the shares in Sasol South Africa that Sasol Khanyisa Public would indirectly own.
- Over the next decade, Sasol South Africa’s dividends will be used to repay this loan. Nevertheless, most dividends issued will not be distributed directly to participants.
- After the financing is finalized, Sasol Khanyisa Public shares will be converted into Sasol BEE Ordinary shares (SOLBE1) traded on the JSE’s empowerment market.
Sasol Khanyisa Ownership and Group Structure
Ownership
- Sasol Khanyisa is the company’s premier BBBEE ownership structure. It owns 25% of Sasol South Africa Limited (SSA), both directly and indirectly.
- SSA is Sasol’s flagship business unit, housing our highly profitable synthetic fuels, chemicals, and gas activities.
- Around 9,2% of SSA is owned by Sasol Khanyisa Public, a company with approximately 230 000 public shareholders. This contributes to the total direct and indirect ownership of SSA, which is 25%.
Group Structure
- SSA is a wholly owned subsidiary of Sasol Limited, in which Sasol Khanyisa has an indirect stake.
- SSA houses South African operations that include Synfuels, Chemicals, and Gas businesses.
- An independent Board of Directors (Board) and set of rules control SSA’s operations.
- Each year, a valuation method will determine the fair market worth of SSA independently.
- Sasol Khanyisa will be represented on the SSA Board of Directors by one of its directors.
Sasol BEE Ordinary Shareholders (SOLBE1)
Shareholders of Sasol BEE Ordinary Shares could continue to retain their shares in the empowerment division of the JSE and participate in Sasol Khanyisa once Sasol Inzalo was dissolved in 2018.
Furthermore, they were offered a free spot in Sasol Khanyisa and extra, freely transferable shares. In addition:
- For every four Sasol BEE Ordinary (SOLBE1) shares held, one bonus Sasol BEE Ordinary (SOLBE1) share is issued to those who stay inside the empowerment section of the JSE.
- Shareholders who opt out of the empowerment segment of the JSE will have their Sasol BEE Ordinary (SOLBE1) shares converted to an equivalent number of Sasol ordinary shares (SOL). For instance, 100 SOLBE1 shares will become 100 SOL shares. However, shareholders will not be eligible to participate in Sasol Khanyisa or receive additional shares.
- Sasol Inzalo Public and Sasol Inzalo Groups shareholders who meet the eligibility requirements can expect an invitation to join Sasol Khanyisa Public and will receive the following:
- Freely transferable 1 Sasol Khanyisa Public share for every 1 Sasol Inzalo Public or Group share, and
- Shares of SOLBE1 are issued at a rate of 1 for every 10 freely tradable shares of Sasol Khanyisa Public.
Benefits of Sasol Khanyisa
The benefits of Sasol Khanyisa are as follows:
- It captures the spirit of empowerment and is an exclusive right offered to exist external Inzalo participants. Furthermore, shareholders can benefit from exposure to Sasol Limited and SSA.
- Khanyisa is vendor-funded, and participants need not provide capital. In addition, a 2.5% trickle dividend is paid to all Khanyisa beneficiaries, and no external debt is associated with the initiative.
- There is no dependence on share price growth to settle debts, making net value creation more sustainable. In addition, Khanyisa creates net value, and there is an upfront and unencumbered issue of SOLBE1 shares to existing Inzalo participants. In addition:
- Sasol ensures that a sustainable net value point is secured from the onset.
- Participants can expect a full dividend on SOLBE1 shares from the onset.
- There is an increase in flow via empowerment ownership of SSA with the growth of international operations.
- Khanyisa is evergreen and allows for the exchange of SSA shares for SOLBE1 at fair value. This allows participants to monetize their holdings, and they can decide on the value they want to realize and when. Furthermore, SOLBE1 can track direct B-BBEE shareholding at any given time.
- Market-related costs to shareholders, with sustainable and robust transactions that occur in the lower quartile of precedent B-BBEE costs. There are no additional costs derived from shareholders once Khanyisa ends, given that there are no significant changes to South Africa’s B-BBEE legislation.
Conclusion
Overall, Sasol Khanyisa is Sasol’s new Broad-Based Black Economic Empowerment (B-BBEE) ownership structure.
Frequently Asked Questions
How much are Sasol Khanyisa’s shares worth?
Sasol Khanyisa shares are worth 330 ZAR per share.
Can you sell Sasol Khanyisa shares?
To sell your SOLBE1 shares, you must contact Computershare by phone or in person and request that they issue a sell order. A call center representative will check your account information and the number of shares you own before initiating the selling process.
What will happen to my Sasol Khanyisa shares?
Sasol Khanyisa public shares will be converted into SOLBE1 shares at fair value in 2028 or sooner if the financing is resolved earlier than that date. Moreover, you will have the option to hold or sell these shares.
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