S Africa’s Sasol to divest 50% of US Gemini HDPE for $404m

SINGAPORE (ICIS)–Sasol will divest its 50% stake in US’ Gemini HDPE to UK’s INEOS for $404m, the South African producer said on Tuesday.

Its wholly owned subsidiary Sasol Chemicals North America has agreed principle terms with INEOS Gemini HDPE Holding Co on the sale of the bimodal high-density polyethylene (HDPE) based in La Porte, Texas, Sasol said in a statement.

The equity interest will be sold to a new company to be formed by INEOS.

The Gemini HDPE plant – a joint venture between INEOS and Sasol – has a capacity of 470,000 tonnes/year, according to the ICIS Supply and Demand Database.

Upon closing of the sale on 31 December 2020, Sasol “will have completed the restructuring of its existing debt facilities”, Sasol said.

Proceeds from the sale will be used by the company to repay near-term debt obligations.

“The sale represents a further step in achieving Sasol´s strategic and financial objectives by accelerating the focus on specialty chemicals and reducing net debt,” it said.