Sasol pulls out of Iran with JV stake divestment

19 August 2013 12:16  [Source: ICIS news]

Deal is signedLONDON (ICIS)--Sasol has sold its holding in Iran-based joint venture Arya Sasol Polymers Company (ASPC), representing the divestment of all the South Africa-based oil giant's investments in the country, the company said on Monday.

According to the company, it has reached an agreement with Main Street 1095, a South Africa-based subsidiary of an Iranian investor, which will acquire 100% of Sasol joint venture vehicle SPI International.

SPI holds a 50% stake in Arya Sasol Polymers.

“As a result of this transaction, Sasol has no on-going investment in Iran,” Sasol said in a filing.

Sasol has been under pressure from international advocacy groups such as the US-based United Against a Nuclear Iran (UANI) to sell its stake in Arya Sasol, while international sanctions on Iran have cut into its profits.

The Arya Sasol complex has a 1m tonne/year ethane cracker, a 300,000 tonne/year low density polyethylene (LDPE) plant and a 300,000 tonne/year medium density/high density polyethylene (MD/HDPE) unit.

Sasol reported a South African rand (R) 1.97bn ($195.4m, €146.7m) impairment on the plant for the half year to the end of 2013, leading to a reduction in group earnings per share for the period. As of August 2013, Sasol had written down the fair value of its 50% stake in Arya Sasol to R2.3bn.

($1 = €0.75, $1 = R10.08, €1 = R13.43)

By: Tom Brown
+44 208 652 3214

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