Johannesburg, South Africa – Sasol South Africa has concluded an agreement to sell its sodium cyanide business to a South African, B-BBEE empowered subsidiary of Draslovka Holding a.s (“Draslovka”), a Czech-based company specialising in cyanide production, for a consideration of R1,46 billion, (subject to customary closing adjustments). The transaction is part of Sasol´s ongoing, strategy-aligned, asset divestment programme.
“Sasol has made progress on its expedited review of the business to consider how it can be most effectively positioned to be sustainable in a low oil price environment. Consistent with this approach, the expanded asset disposal process has yielded good interest in relation to a number of assets, despite the macro environment uncertainty,” said Sasol President and CEO, Fleetwood Grobler.
Draslovka is a Czech-based, privately-owned company, specialising in the manufacture, distribution, and application of specialty chemicals globally, particularly cyanide-based substances. The company has more than 100 years of experience in cyanide production and cyanide chemistry for use in synthesis, mining, and industrial and agricultural applications. It has operations in the Czech Republic, South Africa, Australia, New Zealand, and India.
Draslovka will take over full operational control of the cyanide business. Key feedstocks, utilities and site services will be supplied by Sasol on an arm’s length basis. Draslovka will use its expertise in the cyanide business to bring new technologies and capabilities to the process, ensuring a continuous and stable supply of cyanide to the mining industry. Sasol also intends to explore the potential for business development opportunities by Draslovka which could result in further synergies at the site.
The transaction, which is expected to close in the first half of calendar year 2022, is subject to the fulfilment of various conditions precedent, including Competition Commission, South African Reserve Bank, license and permit regulatory approvals.