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| Version 2 | Version 3 |
|---|---|
| Black empowerment deal for Sasol | Black empowerment deal for Sasol |
| (about 2 hours later) | |
| South African oil giant Sasol has said it will transfer 10% of the company to black owners to qualify under Black Economic Empowerment (BEE) rules. | South African oil giant Sasol has said it will transfer 10% of the company to black owners to qualify under Black Economic Empowerment (BEE) rules. |
| Sasol said it will sell the stake worth about 17.9bn rand ($2.4bn; £1.2bn) to black staff, investors and key partners in the biggest BEE deal to date. | Sasol said it will sell the stake worth about 17.9bn rand ($2.4bn; £1.2bn) to black staff, investors and key partners in the biggest BEE deal to date. |
| The government programme aims to redress the worst distortions of wealth created by the apartheid regime. | The government programme aims to redress the worst distortions of wealth created by the apartheid regime. |
| Sasol's announcement coincided with the release of annual earnings, up 10%. | Sasol's announcement coincided with the release of annual earnings, up 10%. |
| South Africa's BEE legislation has come under fire in the past for enriching people in the right political circles, leading to accusations of government cronyism. | South Africa's BEE legislation has come under fire in the past for enriching people in the right political circles, leading to accusations of government cronyism. |
| But Sasol insisted that this transaction was "ground-breaking, not only in terms of its size, but also in terms of its overarching ambition to create a legacy of building skills and capacity in the South African economy." | But Sasol insisted that this transaction was "ground-breaking, not only in terms of its size, but also in terms of its overarching ambition to create a legacy of building skills and capacity in the South African economy." |
| A new image | A new image |
| In an interview with the BBC World Service, Sasol chief executive Pat Davies added: "The deal brings into the mainstream of the economy, people who were previously disadvantaged... and who probably wouldn't have been shareholders in a company like Sasol. | In an interview with the BBC World Service, Sasol chief executive Pat Davies added: "The deal brings into the mainstream of the economy, people who were previously disadvantaged... and who probably wouldn't have been shareholders in a company like Sasol. |
| "It's great for the development of our economy. The better the economy does we, as a fairly significant player in the local market, benefit as a result." | "It's great for the development of our economy. The better the economy does we, as a fairly significant player in the local market, benefit as a result." |
| If approved by shareholders, the transaction will be implemented in 2008, the Johannesburg-based firm said. | If approved by shareholders, the transaction will be implemented in 2008, the Johannesburg-based firm said. |
| Sasol's image has traditionally been of a white, male-dominated corporation that grew rich during the apartheid years and therefore was often targeted by anti-apartheid campaigners for sanctions. | Sasol's image has traditionally been of a white, male-dominated corporation that grew rich during the apartheid years and therefore was often targeted by anti-apartheid campaigners for sanctions. |
| But since Mr Davies took the post of chief executive two years ago, the company has undergone a rapid pace of change, with more diversity apparent in senior management. | But since Mr Davies took the post of chief executive two years ago, the company has undergone a rapid pace of change, with more diversity apparent in senior management. |
| Deal terms | Deal terms |
| Under the terms of the deal, 3% of Sasol's shares will be earmarked for the black public, mainly black staff will be able to buy 4% and 1.5% will be available for strategic partners, such as unions and suppliers. | Under the terms of the deal, 3% of Sasol's shares will be earmarked for the black public, mainly black staff will be able to buy 4% and 1.5% will be available for strategic partners, such as unions and suppliers. |
| The rest will be owned by the Sasol Foundation, which will be created to offer skills development to South Africa's most disadvantaged, particularly women. | The rest will be owned by the Sasol Foundation, which will be created to offer skills development to South Africa's most disadvantaged, particularly women. |
| Funding for the stake will be provided by Sasol and bank loans and the shares must be held for a set period before they can be sold. | |
| Separately the company said a weaker rand to the dollar and higher oil prices boosted headline earnings per share. | Separately the company said a weaker rand to the dollar and higher oil prices boosted headline earnings per share. |
| But further profits growth was hindered by maintenance shutdowns at its gas-to-liquids plant in Qatar. | But further profits growth was hindered by maintenance shutdowns at its gas-to-liquids plant in Qatar. |