Its decision time for Sasol Inzalo BEE Ordinary (SOLBE1) shareholders. They must in the next few days make a choice between converting their shares into Sasol Group shares or to retain their SOLBE1 shares in order to enjoy the Sasol Khanyisa offer.
The 10 years old Sasol Inzalo scheme is set to expire this year. Those who participated in the cash option of the scheme 10 years ago earned the now JSE listed SOLBE1 shares. These shares were destined for conversion into Sasol Group ordinary shares. But the failure of the Sasol Inzalo scheme to create value for investors necessitated the creation of Sasol Khanyisa which can be seen as giving the affected investors another chance to realise value.
SOLBE1 shareholders will be invited to make their choice between retention and conversion on the 21st of February 2018. The election option will be open until the 5th of April. See critical action dates in this article.
A Sasol statement notes that “At the unwind of Sasol Inzalo, Sasol BEE Ordinary shareholders will have the opportunity to keep their shares in the empowerment segment of the JSE and participate in Sasol Khanyisa. They will be invited to participate in Sasol Khanyisa at no cost to them and will also receive additional shares that are immediately tradable.”
The retention option
Those that choose to remain within the empowerment segment of the JSE will receive one bonus Sasol BEE Ordinary Share (SOLBE1) for every four Sasol BEE Ordinary (SOLBE1) shares owned.
The conversion option
Those that choose to leave the empowerment segment of the JSE will automatically receive Sasol ordinary shares equal to the number of their Sasol BEE Ordinary (SOLBE1) shares. 100 SOLBE1 shares will become 100 Sasol ordinary shares.
Those who go with the conversion to Sasol ordinary shares will not take part in Sasol Khanyisa and they will not receive any additional shares.