South Africa’s integrated energy and chemical company Sasol said on Monday that it has sold 30 percent of its stake in the Republic of Mozambique Pipeline Investments Company (ROMPCO) to a consortium of fund managers for R5 billion (about US$354 million).
In a statement, the South African firm said it has agreed to sell part of its stake in the Mozambique gas pipeline to a consortium comprising black empowerment firm, Reatile Group, and the IDEAS Fund, which is managed by African Infrastructure Investment Managers. African Infrastructure Investment Managers is a subsidiary of Old Mutual Alternative Investments Holdings.
“The Sale Shares will, subject to certain adjustments, be sold for a consideration comprising an initial amount of R4,145 billion and a deferred payment of up to R1 billion payable if certain agreed milestones are achieved by 30 June 2024,” Sasol group chief financial officer Paul Victor said.
ROMPCO is a joint venture between Sasol, Companhia Mocambiçana de Gasoduto and South African Gas Development Company.
Until the latest transaction, Sasol owned a 50-percent stake of the 865-kilometre pipeline that transports gas from Mozambique to South Africa.
It would now retain a 20-percent stake once the transaction is concluded, and would continue to operate and maintain the pipeline in terms of the commercial agreement between Sasol and ROMPCO, which was independent of the proposed transaction.
The transaction comes about five months after the South African firm announced in December 2020 that it was selling its stake in Ressano Garcia Thermal Power Plant in Mozambique to Nigeria’s Azura Power for about US$145 million.