Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 82
SASOL LIMITED GROUP
Operating and other activities continued
Disposal groups held for sale continued
Secunda Air Separation Unit
Prior to year end, the Group commenced a process to dispose of its sixteen air separation units and this was approved by the
appropriate Board Committee and Sasol South Africa board.
On 28 July 2020, Sasol South Africa Limited ("SSA"), announced that an exclusive negotiation agreement had been signed with
Air Liquide for the sale of its sixteen air separation units and associated business located in Secunda.
Definitive Agreements for the divestment are in the process of being negotiated. The proceeds of approximately R8,5 billion
(R5,525 billion plus EUR147,5 million, translated at Closing to US$) will be received after fulfilment of various conditions, including
Competition Commission approval. Assets and liabilities associated with the air separation units were classified as held for sale on
30 June 2020.
Investment in Republic of Mozambique Pipeline Investment Company (Pty) Ltd (ROMPCO)
The Group has commenced a process to divest from some or all of its shareholding in ROMPCO. ROMPCO owns and operates the
natural gas transmission pipeline between Temane in Mozambique and Secunda in South Africa for the transportation of natural gas
produced in Mozambique to markets in Mozambique and South Africa. The assets and liabilities of ROMPCO were classified as held
for sale as at 30 June 2020 following approval by the Board to continue with the divestment process.
A non-current asset or disposal group (a business grouping of assets and their related liabilities) is designated as held for sale
when its carrying amount will be recovered principally through a sale transaction rather than through continuing use. The
classification as held for sale of a non-current asset or disposal group occurs when it is available for immediate sale in its present
condition and the sale is highly probable. A sale is considered highly probable if management is committed to a plan to sell the
non-current asset or disposal group, an active divestiture programme has been initiated, the non-current asset or disposal group
is marketed at a price reasonable to its fair value and the disposal will be completed within one year from classification.
Where a disposal group held for sale will result in the loss of control or joint control of a subsidiary or joint operation,
respectively, all the assets and liabilities of that subsidiary or joint operation are classified as held for sale, regardless of whether
a non-controlling interest in the former subsidiary or an ongoing interest in the joint operation is to be retained after the sale.
Where a disposal group held for sale will result in the loss of joint control of a joint venture or significant influence of an associate,
the full investment is classified as held for sale. Equity accounting ceases from the date the joint venture or associate is classified
as held for sale.
Before classification of a non-current asset or disposal group as held for sale, it is reviewed for impairment. The impairment loss
charged to the income statement is the excess of the carrying amount of the non-current asset over its expected fair value less
costs to sell.
No depreciation or amortisation is provided on non-current assets from the date they are classified as held for sale.
Sasol Annual Financial Statements 2021