Its decision time for Sasol Inzalo BEE Ordinary (SOLBE1) shareholders. They must in the next few days make a choice between converting their shares into Sasol Group shares or to retain their SOLBE1 shares in order to enjoy the Sasol Khanyisa offer.
The 10 years old Sasol Inzalo scheme is set to expire this year. Those who participated in the cash option of the scheme 10 years ago earned the now JSE listed SOLBE1 shares. These shares were destined for conversion into Sasol Group ordinary shares. But the failure of the Sasol Inzalo scheme to create value for investors necessitated the creation of Sasol Khanyisa which can be seen as giving the affected investors another chance to realise value.
SOLBE1 shareholders will be invited to make their choice between retention and conversion on the 21st of February 2018. The election option will be open until the 22nd of March. See critical action dates in this article.
A Sasol statement notes that “At the unwind of Sasol Inzalo, Sasol BEE Ordinary shareholders will have the opportunity to keep their shares in the empowerment segment of the JSE and participate in Sasol Khanyisa. They will be invited to participate in Sasol Khanyisa at no cost to them and will also receive additional shares that are immediately tradable.”
The retention option
Those that choose to remain within the empowerment segment of the JSE will receive one bonus Sasol BEE Ordinary Share (SOLBE1) for every four Sasol BEE Ordinary (SOLBE1) shares owned.
The conversion option
Those that choose to leave the empowerment segment of the JSE will automatically receive Sasol ordinary shares equal to the number of their Sasol BEE Ordinary (SOLBE1) shares. 100 SOLBE1 shares will become 100 Sasol ordinary shares.
Those who go with the conversion to Sasol ordinary shares will not take part in Sasol Khanyisa and they will not receive any additional shares.
The Sasol Inzalo Public chapter
Qualifying shareholders in Sasol Inzalo Public and Sasol Inzalo Groups will be invited to participate in Sasol Khanyisa Public and will receive:
- 1 Sasol Khanyisa Public share for every Sasol Inzalo Public or Groups share held, at no cost, and
- 1 SOLBE1 share for every 10 Sasol Khanyisa Public shares that are immediately tradeable, at no cost.
As an example, if you own 100 Sasol Inzalo Public shares you will receive at no cost to you:
- 100 Sasol Khanyisa Public shares, funded by Sasol; and
- a further 10 SOLBE1 shares, worth R3 300 based on a share price of R330 per share (value will depend on actual share price).
All SOLBE1 shares, issued at no cost to you, are tradeable from the date of issue.