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Be Smart About South Africa

This Will be Sasol’s Worst Week Since Listing in September 1989

An oil price crash has wiped $4.8 billion off the market value of South African petrochemicals group Sasol, adding to the government’s difficulties in shoring up business confidence as giant state-backed companies flounder. The destruction of value at one of South Africa’s biggest companies is another problem for a government grappling with a heavily-indebted state power company and airline. Sasol is not a state-run company, but its top two shareholders are state agencies, which jointly hold a nearly quarter share. The top shareholder, state asset manager the Public Investment Corporation has, a 15.05% stake, while local development finance institution Industrial Development Corporation holds 8.53%, according to Refinitiv Eikon.

SOURCE: REUTERS AFRICA

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