By ABDUL MILAZI

Business Correspondent

SASOL’S R28-billion broad- based black economic empowerment share scheme – to be officially launched on Thursday – could be a blessing for those who have cash and a curse to those who don’t.

Sasol is offering blacks, including its employees, 63 million shares or 10% of the company’s total share capital, in the country’s single largest BEE deal to date.

According to a company circular dating from its most recent shareholder meeting, black members of the public who do not have money to buy the stipulated minimum of 10 shares at R360 per share, can pay a minimum of R457.50 for 25 Sasol Inzalo shares, but would be locked in for 10 years.

These shares will be funded by Sasol and a number of local banks. Like all financed purchases, it would be like buying shares on loan.

According to Johan Koorts, an associate at specialist BEE deal makers Bravura Equity Services, those who opted for the funded shares may find themselves losers in the end should the share value drop.

“When the oil price comes down, Sasol’s share price will drop, but the value of the shareholders’ debt will not. They will find themselves owing more than what the shares are worth,” said Koorts.

He said the discounted price at 10% of the March 23 trading price of R410, would work perfectly for those who can afford to buy them outright.

He said those intending to buy for cash have already made a 38% profit before they have even bought the shares, as the Sasol share price closed at a record high of R514 per share on Thursday, driven by the crude oil price rising to 130 a barrel and the rand weakening in the face of hate attacks against foreigners.

He said, however, that even those who bought for cash could not be guaranteed that Sasol’s share price would be at current levels at the end of the two-year lock in period.

Black members of the public will be allocated 3% of the 10% stake, black business selected by Sasol would get 1.5%, company employees 4%, and the Sasol Inzalo Foundation 1.5%.

Shoaib Ahmed Vayej, BEE analyst at Sanlam Investment Management, said: “The use and extent of leverage is a very effective empowerment tool, especially for smaller investors subscribing for less than 100 shares. The offer will give participants the opportunity to participate in Sasol’s international businesses, including Sasol Synfuels International, Sasol Polymers business in Iran, Arya, Sasol Olefins & Surfactants, and Sasol Wax.”

According to Sasol’s recent circular to shareholders: “Sasol Inzalo will use the proceed of the subscription from the funded shares for 100% of ordinary shares in a company (FundCo) which in turn will use such proceedings together with preference share funding to subscribe to the Sasol Preferred Ordinary Shares in Sasol”.

Despite the 10-year lock-in period, the funded shares may only be sold after three years, and only to black people.