Sasol announced on Wednesday that it has signed an exclusive negotiation agreement to sell 16 air separation units located in Secunda to French multinational supplier of industrial gases, Air Liquide, for R8.5 billion.
Air Liquide already owns and operates the seventeenth air separation unit at the Secunda site.
The petrochemical group said the agreement forms part of Sasol’s accelerated divestment programme to reduce debt.
The air separation units, which have a capacity of up to 42 000 tons per day, provide oxygen for Sasol’s fuels and chemical production processes as well as producing various other gases utilised at the site.
As part of the sale agreement, Air Liquide will supply the gases to Sasol's operations under a long-term gas supply agreement.
The final agreement will be negotiated mid-August. Sasol said the transaction is expected to close within the 2021 financial year.
The group said in a statement that it anticipates Air Liquide’s expertise to allow for targeted reduction in greenhouse gas emissions.
The transaction remains subject to further due diligence and the approval by the Competition Commission and the South African Reserve Bank.