Sasol Inzalo BEE Ordinary (SOLBE1) shares have fallen significantly over the past few months on the back of a complicated wind up and rebirth of the broader Sasol black economic empowerment investment scheme.
SOLBE1 shares have been hobbling around R300 per share this month which reflects a significant loss from the levels above R400 recorded early this year. SOLBE1 shares came out of the cash option in the R30 billion Sasol B-BBEE scheme of 2008. They must not be confused with the indebted and flopping chapter of the deal whose shares were coded as SIPBEE.
SOLBE shares have tended to trace the Sasol Group shares but do reflect a liquidity discount. And the recent depression came after shareholders were given an option to continue holding these share or to swap them for Sasol Group shares.
Part of the broader unwinding of the old Sasol B-BBEE transaction the SOLBE1 option was as follows:
SOLBE1 shareholders who chose to retain their shares would receive one bonus SOLBE1 for every four shares owned. And they earned a right to participate in the new Sasol Khanyisa scheme.
And those that chose to leave the empowerment segment of the JSE would receive Sasol Group ordinary shares equal to the number of their SOLBE1 shares. Those who go with the conversion to Sasol Group ordinary shares would not take part in Sasol Khanyisa.