By Liesl Peyper and Suren Naidoo.
Transnet has agreed to pay R4.3 billion to Sasol Oil in full and final settlement of all legal disputes between the two parties, JSE-listed petrochemicals giant Sasol announced in a Sens statement om Friday.
Sasol shares jumped over 6% in morning trade on Monday as the market digested the news.
The group confirmed that the payment, which excludes Vat,is expected to be made on or before 30 June 2025.
It follows a judgment by the high court in June 2024 in favour of Sasol and TotalEnergies, ordering Transnet to pay R3.9 billion plus interest.
Sasol’s share price went above R86 at one stage, but ‘settled’ around 6.3% higher or R85-a-share just before 10am on Monday.
The Transnet settlement announcement was made just as the market closed on Friday.
While Sasol’s shares closed over 2% down on Friday, it ended the week almost 20% up, as the market cheered its Capital Markets Day and strategy update earlier in the week.
Transnet appeal
Transnet has applied for leave to appeal the judgment, which is currently under consideration by the Supreme Court of Appeal.
As a result, the enforcement of the payment was suspended pending the outcome of the appeal. 855 million (excluding Vat and interest). Judgment in that case is still pending.
Transnet’s R4.3 billion settlement with Sasol on Friday comes just a few days after Finance Minister Enoch Godongwana announced a new R51 billion government guarantee in his latest Budget Speech for the cash-strapped ports, rail and pipelines operator.
Rating agency Moody’s recently warned about Transnet’s financial position.