Sasol completes divestment of 50% stake in Gemini HDPE JV
Sasol announced that it has completed the divestment of its 50% interest in the Gemini high-density polyethylene joint ventures to INEOS Gemini HDPE LLC effective December 31, 2020.
The Gemini HDPE plant in Texas, U.S.A., which became operational in 2017, is a joint venture between Sasol and UK-based petrochemical company INEOS.
Sasol announced the sale in November 2020 to focus on specialty chemicals and reduce the company’s debt.
In December 2020, Sasol closed a USD2 billion 50% stake sale in three of its newest plants at its Louisiana petrochemical complex to chemical company LyondellBasell Industries.
The South African petrochemicals company, the world’s top manufacturer of motor fuel from coal, has been restructuring its operations to reduce debt, which totaled ZAR189.7 billion (USD12.6 billion) as of June 30, 2020.
The transaction was valued at USD404 million and was satisfied through a combination of cash and release from debt obligations. The relevant debt facilities and security package have now been successfully restructured, releasing Sasol and its subsidiaries from any obligation to provide further security.
The cash proceeds from the transaction were received on December 31, 2020, and will be used by Sasol to repay near-term debt obligations.