| Wed 1 Oct 2003, 9:52 | | SASOL LIMITED - PRESS RELEASE |
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SASOL LIMITED - PRESS RELEASE
SASOL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Share codes: JSE - SOL
NYSE - SSL
ISIN: ZAE000006896
SASOL OIL AND EXEL PETROLEUM PLAN MERGER
In a first step towards establishing an empowered liquid fuels business, Sasol
Oil and Exel Petroleum today applied to the Competition Commission for approval
to merge their businesses.
Sasol chief executive, Pieter Cox said that if the merger is approved, the
merged company - Sasol Liquid Fuels Business ("LFB") - will incorporate all of
the liquid fuels interests of both Sasol and Exel Petroleum.
A response by the Competition Authority is expected by no later than 31 December
2003. Approval would enable the merged liquid fuels business to launch its
operation on 1 January 2004, which will also coincide with the termination of
the longstanding Main Supply and Blue Pump agreements. Sasol gave notice of its
intention to end these agreements five years ago and they expire at the end of
December 2003.
Cox said South African motorists would experience an excellent level of service
and convenience at the ultra-modern Sasol service stations being opened in all
provinces. Sasol will continue to utilise the successful Excel brand and
continue to roll out service stations in Exel colours.
Exel chairman Jomo Sono said Exel will gain substantially: "We shall cover the
entire value chain. We have a secure supply of product from the industry leader.
We will have greater access to capital and technology for future expansion - and
the prospect of a meaningful share of SA"s biggest and most competitive fuel
company."
The LFB will include all of the two companies" assets in the liquid fuels
business. They will cover the entire value chain commencing with crude oil
procurement for Sasol"s 64% stake in the Natref refinery and receiving blending
components from the Synfuel refinery in Secunda. All of Sasol Oil"s and Exel
Petroleum"s assets in distribution and marketing will be added as well as Sasol
Oil"s assets in the marketing and storage of Fuel Oil and its shareholding in
companies such as Tosas (road binder business) and FFS (Fuel Firing Systems).
The Liquid Fuels Charter defines that empowerment needs to take place in
companies that are integrated and exposed to all facets of the value chain.
Cox said he agreed with the provisions of the Charter that stated that companies
exposed to only one segment of the value chain were not sustainable in the long
run. The new company will straddle the industry"s production and distribution
chain and will be able to effectively compete with the other multi-national oil
companies based in South Africa. Maurice Radebe, managing director of Exel
Petroleum, will be managing director of the Fuels Marketing Division of the
restructured company.
Cox said: "This transaction is a major win for both sides. Sasol gains a
proven empowerment partner, a partner we know well and admire. The transaction
helps us to comply with the Charter and launches us on the way to true
empowerment. It also gives us greater access to the retail and commercial
markets.
"We have worked closely with Exel Petroleum since its establishment in 1997.
Under the leadership of chairman Jomo Sono and managing director Maurice Radebe,
Exel Petroleum has grown and prospered.
"Turnover was more than R2, 3-billion (excluding levies) last year and operating
profit this year is expected to be over R100-million. It has reached a 3,7%
share of the petrol market and 7,0% share of the diesel market for the month of
June 2003. It has 189 service stations and many loyal customers."
Ends
For more information, please contact:
Johann van Rheede
Sasol Group Communication: Media Manager
Telephone +27 11 441-3295
Mobile 082 329 0186
E-mail johann.vanrheede@sasol.com
Sasol, with a market capitalization of approximately USD 7 billion, is an
integrated oil and gas group with substantial chemical interests. Based in
South Africa and operating in 15 other countries throughout the world, Sasol is
the leading provider of liquid fuels in South Africa and a major international
producer of chemicals, using a world leading technology for the commercial
production of synthetic fuels and chemicals from low-grade coal. In the future
Sasol expects to apply this technology to convert natural gas to diesel and
chemicals. Sasol manufactures over 200 fuel and chemical products that are sold
in more than 90 countries and also operates coalmines to provide feedstock for
synthetic fuels and chemical plants. The company also manufactures and markets
synthesis gas and operates the only inland crude oil refinery in South Africa.
Internet address: www.sasol.com.
Disclaimer - Sasol Ltd
We may in this document make statements that are not historical facts and relate
to analyses and other information based on forecasts of future results and
estimates of amounts not yet determinable. These are forward-looking statements
as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words
such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan",
"could", "may", "endeavor" and "project" and similar expressions are intended to
identify such forward-looking statements, but are not the exclusive means of
identifying such statements. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and specific, and there
are risks that predictions, forecasts, projections and other forward-looking
statements will not be achieved. If one or more of these risks materialize, or
should underlying assumptions prove incorrect, actual results may be very
different from those anticipated. The factors that could cause our actual
results to differ materially from the plans, objectives, expectations, estimates
and intentions expressed in such forward-looking statements are discussed more
fully in our registration statement under the Securities Exchange Act of 1934 on
Form 20-F filed on March 6, 2003 and in other filings with the United States
Securities and Exchange Commission. Forward-looking statements apply only as of
the date on which they are made, and we do not undertake any obligation to
update or revise any of them, whether as a result of new information, future
events or otherwise.
Date: 01/10/2003 09:32:54 AM Produced by the JSE SENS Department
