Sasol will not be going ahead with its plan to raise $2 billion through a rights issue, the company announced on Monday as it continued to focus of reducing debt amid challenging operational conditions.
The much talked anticipated rights issue was announced about a year ago as the company was hit a combination of a sharp drop in oil prices, Covid-19's impact on operations and softer chemical prices. A decision on the rights issue, which would have been part of efforts to stabilise its balance sheet, was expected to me made in January.
The company revealed on Monday as it released its interim financial results for the six months ended 31 December that "a decision was made not to pursue a rights issue given the current macroeconomic outlook, and the significant progress made on our response plan initiatives".
The $3.3 billion secured from asset disposals since March last year had helped the company also had an impact on arriving at the decision to halt the rights issue.