Sasol is pleased to announce that the divestment to sell its 50 percent interest in the Gemini high-density polyethylene (Gemini HDPE ) joint venture to its partner INEOS for US$404 million successfully closed on 31 December 2020.

The consideration of US$404 million was satisfied through a combination of cash and release from debt obligations. The relevant debt facilities and security package have now been successfully restructured, releasing Sasol and its subsidiaries from any obligation to provide further security. The cash proceeds from the transaction were received on 31 December 2020, and will be used by Sasol to repay near-term debt obligations.

“This divestment continues the transformation of Sasol’s Chemicals business toward specialty chemicals markets,” Fleetwood Grobler, Sasol President and Chief Executive Officer said in a n earlier release. “We are pleased that our valued partner INEOS is acquiring Sasol’s share of the Gemini HDPE JV and appreciate our productive partnership over the past six years.”

Gemini is a toll manufacturer of bimodal high-density polyethylene products operated by INEOS and located within the INEOS Battleground Manufacturing Complex in La Porte, Texas.

The divestment consolidates 100 percent of Gemini ownership and all marketing under INEOS.