Fin24

SacOil completes Greenhills sale

2012-10-03 12:08

Johannesburg - African oil and gas company‚ SacOil Holdings [JSE:SCL]‚ announced on Wednesday it has successfully disposed of its Greenhills manganese processing plant in SA for a consideration of R7m to a company representing the employees of the plant.

“The sale of the Plant is on an 'as is' and vendor financed basis‚ with the liabilities for employees‚ rehabilitation and environment aspects passing on to the Purchaser. The performance of the plant has deteriorated over the last few years as the requirement for further capital expenditure has become apparent‚” SacOil said in a note on Wednesday.

According to SacOil the plant was making a loss but reported a R1.67m profit before tax for the twelve months to 28 February 2012.

“The sale of the plant will reduce the current monthly negative cashflow costs to SacOil of some R0.2m. It will ensure the continued employment of the personnel while providing empowerment for black employees; enable SacOil management to focus on the core oil and gas business and reduce future potential liabilities‚” SacOil said.

SacOil’s share price slumped 5.6% on Wednesday morning.

At 11:21am the counter was trading 5.56% lower at 34c after reaching an all-time high of 37c in March last year.


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