Sasol is a South Africa established international chemical and energy company established on the 26th of September 1950. It is in operation in 33 countries. It is listed on the Johannesburg Stock Exchange (JSE). The Sasol broad-based black economic empowerment public deal consisted of two schemes; the funded invitation (Sasol Inzalo) and the cash invitation (SOLBE1). The funded invitation was extremely sought-after and ended up being more than 300% oversubscribed, while the cash invitation was oversubscribed by 13%. The cash offer (SOLBE1) was simply ordinary shares offered at a discounted price, which means shareholders receive the same dividend and have equal voting rights as SOL shares. At the end of the empowerment period SOLBE1 shares become SOL shares in a ratio of 1:1. The success of this deal is driven by three factors: the cost of debt over the period, the number of dividends paid by Sasol over the period, and the exit price of Sasol shares at the end of the empowerment period.

AB InBev boasts a geographically diversified portfolio which gives balanced exposure to both developed and developing markets. AB InBev has achieved its remarkable growth through a series of massive mergers and buy outs with some of its largest global competitors. The recent approval of the acquisition of SABMiller will continue this history, and further cement AB InBev’s status as a global powerhouse. With many of its brands being some of the most well-recognised and valuable beers in the world, AB InBev is unrivalled in its scope, capital resources and diversity, and is set to continue the extraordinary growth of AB InBev share price.

Sasol is looking at unlocking Mozambique’s hydrocarbon potential through Sasol’s on-going drilling campaign. The Mozambican gas industry is poised to play an increasingly important role in the Southern African regional energy landscape, and a major part of Sasol’s future. This will bode well for the SOLBE1 share price as this translates to growth prospects for the entire Sasol group. In North America, the Sasol Group has seen increased capital requirements for the Lake Charles Chemical Project. It however remains confident that it will be successfully implemented and that it will add value to SOLBE1 shareholders in the long term.
Sasol continues to maintain a high level of focus on risk management and monitoring across the spectrum of the group’s operations. Especially its measures to enhance cybersecurity, and the added focus on efficient and effective project delivery through the formation of its Capital Investment Committee. A value return for shareholders in a depressed oil price scenario is important and Sasol has approved measures to increase its cash conservation target range to between R65 billion and R75 billion up to 2018’s end of financial year. Which stands to positively shape investor confidence, driving SOLBE1 shares on an upward trajectory. This strategy has enabled the group to remain flexible. Capital funding requirements and dividend policy of 2,2 to 2,8 times headline earnings cover range. At 30 June 2016, the dividend cover was 2,8 times, compared to 2,7 times the previous year. The Sasol Group overall delivered a strong operational performance across most of the value chain. This has particularly seen SOLBE1 shares perform slightly better, with the sense that the group’s growth will see better returns for SOLBE1 stocks and its shareholders. This has seen an increase (97 000 tons) in Secunda Synfuels’ production volumes to a history high of 7,8 million tons, a 1% increase in Natref production and a 4% increase in production at Sasol’s Eurasian Operations. Finally, Sasol’s Mozambican operation recorded a profit of R1 128 million compared to a profit R1 847 million in the prior year. However volumes increased by 5% as a result of its efforts to de-bottleneck the production facility. This is coupled with the increase in gas transportation capacity to 169 bscf and a full volume offtake by Sasol’s joint electricity operations in Mozambique

SOLBE1 share price will rise or fall largely on the performance of Sasol’s financial and operational performance, which has an effect on the dividends upon which SOLBE1’s share worth rests. An increase in Sasol share price will see a direct increase in the stock of SOLBE1. Sasol had liabilities that exceed its asset base on the 31st of December 2014, the difference was R372 million. That is not all there is to it, its financial income of R248 million was mainly used to pay finance costs and capital repayments. This is made more difficult by the fact that it needs to service a R7 billion long-term debt, while its assets amount to R6.9 billion. This sent SOLBE1 shares on a trade tail spin. This has been made worse by the fact that Sasol’s decline had continued by late December 2015. With the share scheme fighting off increased long-term debt, worth R7.2 billion. With the fluctuation of the economy and a rise in interest rates, the forecast is a rise in Sasol’s debt and a loss in value for SOLBE1. This does not bode well for SOLBE1 as it derives its income from Sasol’s dividends.

The financial annotations vary, given this data: There is a strong sentiment among many finance and investment sages that due to Sasol’s expressed guarantees, the 10% rise in share price is likely to happen before the maturation date. Even if Sasol is “technically insolvent”. Another measured opinion is that SOLBE1 shareholders should put their stocks up for sale and rather buy the sturdier Sasol stock, today. However, this could prove a bit difficult
considering SOLBE1’s portfolio shows low levels of anticipated liquidity, especially on the live online trading charts. However, given the latest Sasol dividend, the share price will be close to positive which means SOLBE1 shareholders are already “in the money” and will benefit directly from any increase in the share price or further dividend. SOLBE1 shares look attractive from a yield perspective and from a valuation perspective. And one should consider looking at their purchase.

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We have made it simple to buy JSE listed firm shares online. The easiest way to buy SOLBE1 Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in SOLBE1 Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in SOLBE1 Group.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

Buying JSE shares has never been this convenient and easy. #myfirstshare

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