South Africa’s Sasol SOLJ.J said on this Monday it had agreed to sell its stake in a Mozambique power plant to Nigeria’s Azura Power for $145 million.
Reuters reported in June that the struggling petrochemicals producer was looking to get rid of its 49% stake in Central Térmica de Ressano Garcia, Mozambique’s first permanent large-scale gas power plant, in a divestment drive.
Sasol announced that a Sale Securities Purchase Agreement has been signed with Azura Power Limited for the divestment of the Company’s full shareholding in CTRG, the gas-to-power plant located in Ressano Garcia, Mozambique.
The transaction is subject to a number of conditions precedent, which include regulatory approval and the waiver of pre-emption rights held by Electricidade de Mocambique (EDM), the Mozambican state-owned electricity company.
The consideration will be approximately USD145 million and covers the equity and other shareholder claims that Sasol holds in CTRG. This will be subject to any relevant closing adjustments, including those in relation to working capital.
This transaction is part of the Company’s ongoing, strategy aligned, asset divestment programme. Sasol remains fully committed to upstream operations in Mozambique, which continue to be integral to Sasol’s strategy.
