Refunds to applicants, where applications could not be met in full, began yesterday evening and will continue today via electronic transfer. Shares will be allotted and issued on 8 September 2008.

 

"Sasol Inzalo's mandate is to deliver a transaction that will help make broad-based black economic empowerment a tangible and practical reality in the lives of South Africans who may previously not have considered this type of an investment," said Sasol chief executive Pat Davies.

 

"We are very proud that Sasol has met these objectives and is today able to initiate its dialogue with our thousands of new shareholders. I warmly welcome them, from 8 September 2008, when they join the Sasol family," he said.

 

 

Both the cash and funded invitations were extremely sought-after with the cash offer being oversubscribed by 13% and the funded being more than 300% oversubscribed.

 

 

Refunds started being paid yesterday evening and are still being paid today, 2 September, where applications were not accepted in full due to the oversubscription. Refunds will also be made where applications were rejected for various reasons as described in the prospectus or where applicants withdrew their applications, after the expiry of the 45 day period, during which the applications were irrevocable.

 

Refunds for the appropriate amount of money will be paid by electronic transfer into each applicant's bank account, as specified on the application form.

 

Interest, at a rate of 5% per annum for the first R1 million and 7% per annum for amounts in excess of R1 million, has been paid to applicants from the closing date of 9 July 2008 until 1 September 2008.

 

 

To achieve a broad-based shareholding of Sasol BEE ordinary shares and Sasol Inzalo ordinary shares, applications were accepted using a "bottom up" approach to prioritise the acceptance of applications for small numbers of shares, over those for larger numbers of shares.

 

In the funded invitation, applicants could apply for a minimum of 25 Sasol Inzalo ordinary shares for an amount of R457,50. Applications for subscription amounts between R457,50 and R915,00 (i.e. 50 Sasol Inzalo ordinary shares) were accepted in full.

 

Applications for 50 shares and more were allocated on a pro-rata basis. In the funded invitation, applicants received the number of shares applied for up to 50 shares and then, on average, 11.3% of the balance of the shares applied for.

 

In the cash invitation, applicants could apply for a minimum of 10 Sasol BEE ordinary shares for an amount of R3660,00. Applications for subscription amounts between R3660,00 and R18 300,00 (i.e. 50 Sasol BEE ordinary shares) were accepted in full.

 

Applications for 50 shares and more were allocated on a pro-rata basis. In the cash invitation, applicants received the number of shares applied for up to 50 shares and then, on average, 76.7% of the balance of the shares applied for.

 

 

It is important, however, to note that additional guidelines were applied in the allocation process resulting in each allocation's unique composition.

 

Within groups, an emphasis was placed on the percentage of black ownership, with a "barrier entry" of 51% being required. In addition to this, groups were rated according to their percentages of female ownership with an additional 10% allocation for women ownership above 51%.

 

In the case of individuals, the allocation model favoured women, the unemployed and the disabled, by allocating an additional 10% to this group of categories.

 

All these additional allocation factors created "allocation buckets" thus it is important to note that the percentages of 76.7% and 11.3% are averages ONLY with each applicant's specific criteria impacting upon the final allocation to the applicant.

 

"We are very pleased with the outcome of the allocation as we met our broad based targets and still recognised the investment interest from applicants seeking larger numbers of shares," said Sasol executive director, Nolitha Fakude.

 

As a further testimony to the broad-based attraction of the invitations, 95% of the applications received were for 200 shares, or less.

 

 

A number of original application forms and supporting documents submitted by some applicants to the South African Post Office (SAPO) have not yet reached the SAPO's central consolidation point, where verification is undertaken. SAPO has captured the information contained in the application forms electronically and has paid all funds related to these applications over to Computershare, Sasol and Sasol Inzalo's share administrators, who are holding these funds for, and on behalf, of the affected applicants. However, Sasol cannot consider these applications until it is in possession of the original signed application forms and supporting documents.

 

In order to expedite this process, SAPO has contacted those applicants to urge them to return to the Post Office to complete duplicate application forms and to resubmit their supporting documents. A letter has been posted to those applicants explaining the situation and providing them with a summary of the information that was captured by the SAPO.

 

These applicants are assured that sufficient shares have been made available to meet this requirement and this matter is being resolved as quickly and efficiently as possible.

 

 

At the general meeting of Sasol shareholders held on 16 May 2008, shareholders inter alia approved the participation by named black Sasol directors in the cash invitation and the funded invitation. The approved maximum participation by black Sasol directors was stipulated in the prospectuses. It was also indicated in the prospectuses that the applications of such directors might be reduced in the event of an oversubscription.

 

Ms Mkhize applied in the funded invitation and cash invitation, but subsequently withdrew the cash invitation application made in her own name. An associate (as defined in the Listings Requirements of the JSE Limited) of Ms Mkhize applied for 430 Sasol BEE ordinary shares in the cash invitation and that application was accepted in respect of 313 shares based.

 

Dr Gantsho did not submit an application to participate in the cash invitation. An associate of Mr Montsi (Mr Montsi resigned as a director of Sasol with effect from 1 August 2008) applied for 10 000 Sasol BEE ordinary shares and that application was accepted in respect of 9 655 shares.

 

Ms Fakude and Dr Mokaba submitted applications to participate in both the cash invitation and the funded invitation, but applied to withdraw their applications. Dr Gantsho submitted an application to participate in the funded invitation and subsequently applied to withdraw the application.

 

The above revocation applications were accepted by Sasol after the 45 day period during which applications were irrevocable. Other applications for revocation of applications were treated in the same way.

 

Due to the oversubscription in the funded invitation, the applications of directors and their associates were not accepted in full.

 

The table below sets out the maximum number of Sasol Inzalo ordinary shares which shareholders approved for allocation to directors, the actual number applied for by directors and/ or their associates and the extent to which their applications were accepted in the funded invitation:

Director or associate of director	Indication in Funded Invitation Prospectus regarding the number of Sasol Inzalo ordinary shares that would be applied for by director	Number of Sasol Inzalo ordinary shares applied for	Number of Sasol Inzalo ordinary shares in respect of which the applications were accepted
Associate of Thembalihle Hixonia Nyasulu	112 000	13 711	1 450
Kandimathie Christine Ramon 1	273 200	230 050	31 004
Associate		70 050	9 470
Associate of Imogen Nonhlanhla Mkhize	130 000	138 097	18 626
Associate of Sam Montsi2	120 000	130 000	17 538

1 Also a director of Sasol Inzalo