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Minister of Cooperative Governance and Traditional Affairs Des Van Rooyen. Picture Credit: Gallo Images
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Discount meaningless as Sasol share price tumbles

By unknown | Sep 11, 2008 | COMMENTS [ 0 ]

Madoda Milazi

Madoda Milazi

Sasol's share price has dropped 14percent in the past six months, effectively cancelling out the discount offered to blacks through the R7,5billion Inzalo BEE public share scheme, which closed last month.

The company announced last week that both the cash and funded options were oversubscribed by 13percent and 300percent respectively.

Those who bought the shares at a 10,7percent discount on the March 2007 closing price of R410 must be kicking themselves.

The share price plunged to R333 yesterday before recovering slightly to R349 a share.

Makwe Masilela, analyst at Nehawu Securities, said people who bought the shares on the open market yesterday would have made a substantial saving on the Inzalo scheme's R366 a share strike price. "And also they are not locked in for two years, a stipulation in the BEE scheme."

He said those who scored from the Sasol Inzalo share scheme had chosen the funded option.

This was designed for black members of the public who did not have the money to buy the stipulated minimum of 10 shares at R366 a share.

They could pay a minimum of R457,50 for 25 shares, but would be locked in for 10 years.

Masilela said commodities were taking a beating because of the strengthening US dollar, and taking Sasol down with them.


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