(3 minutes read)
· Sasol of South Africa has received offers from firms including Ineos Group for a large stake in a US chemical complex it is
selling to shore up its finances
· It is seeking an industrial partner for the Lake Charles project – which will make the chemical building blocks manufacturing
products including packaging, bottles and footwear, plus solvents, explosives and fertilizers – and may structure any deal as a joint
venture, a person familiar with the matter said in April
Sasol of South Africa has received offers from firms including Ineos Group for a large stake in a US chemical complex it is selling to
shore up its finances, according to media reports.
Chevron Phillips Chemical and LyondellBasell Industries are also in the race and are into a second round of bidding for a slice of the
Lake Charles project in Louisiana. The stake, sources say, can fetch US$2 billion. There is no confirmation about the developments from any of the parties involved.
Sasol’s is in need of funds to develop the Lake Charles site, which will help the company to diversity from fuel production. The cost of
the plant has risen sharply from early estimates to US$13 billion.
The company’s share price has fallen by 54% this year, bringing its market valuation to around US$5.1 billion. Sasol said in March that it planned to repay US$6 billion of debt by the end of its next fiscal year in June 2021, mostly through asset sales.
It is seeking an industrial partner for the Lake Charles project – which will make the chemical building blocks manufacturing products
including packaging, bottles and footwear, plus solvents, explosives and fertilizers – and may structure any deal as a joint venture, a
person familiar with the matter said in April.
