News update: Sasol disposes stake in US, and more

 News update: Sasol disposes stake in US, and more

News update.

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Santam assesses previously rejected Covid-19 claims

Covid-19 claims that were previously rejected are being assessed by the insurer, Santam. Like other insurers, Santam rejected certain business interruption claims made as a result of lockdowns under the Covid-19 pandemic.

While court rulings urging insurers to pay out will be respected, Santam claimed that it would challenge a recent finding that the insurer is liable for an indemnity period of 18 months, as with the specific case involving Ma-Afrika after the hotel group won an insurance battle against Santam in November. According to Santam, the indemnity period should be decreased to three months. Approximately R3bn has been raised to cover such liabilities, with R1,3bn of this already paid out in the form of interim relief to those affected by the lockdown.

Sasol disposes stake in US-based joint venture

To settle around $404m debt, Sasol disposed of its 50% stake in a US-based Gemini high- density polyethylene joint venture. The stake was sold to its partner, INEOS, a British chemical company.

The divestment was completed on December 31 and will be used to repay near-term debt obligations. Sasol’s financial performance for the period ending June reflected that it had experienced a loss of R91,3bn. This was a result of the impact of oil prices slumping and the write-downs of almost R112bn in the wake of the Covid-19 pandemic. Sasol has also seen the loss of half its share value within the past year. After markets had opened on Monday, Sasol share prices were trading at R135,77, 1,37% higher.

Given the impact of the pandemic, Sasol anticipates that the oil price will remain relatively low for the next year. It has started offloading more assets in an effort to improve its financial position.

Chris Louw

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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