Petrochemical firm Sasol said last month it was selling the stake in the Rompco pipeline from Mozambique to South Africa to a consortium of investors including Reatile Group for an initial amount of R4.15bn.
But that deal was subject to pre-emptive rights on the shares held by existing shareholders iGas, a subsidiary of South Africa’s Central Energy Fund, and Companhia Moçambicana de Gasoduto (CMG), a subsidiary of Mozambique’s Empresa Nacional de Hidrocarbonetos.
iGas and CMG will now increase their stakes in Rompco to 40% each from their current level of 25%. Sasol, which is trying to shed assets to pay off debt, will reduce its shareholding from 50% to 20%.
The transaction will be fully funded from past and future dividends generated by the 865-kilometre pipeline, the Central Energy Fund and Empresa Nacional de Hidrocarbonetos (ENH) said in a joint statement.
“Having both governments as majority shareholders of the cross-border pipeline is strategic, since the pipeline is the single source of gas to the South African market,” ENH chief executive Estêvão Pale said.
Sasol said in a statement: “We can confirm that Sasol has received pre-emptive rights notices and will now review the notices. We believe that the successful partners will add significant value to this important regional energy asset.”