By DEVON MAYLIE
JOHANNESBURG -- Sasol on Monday said the company is in
talks with a buyer for its Iran business as the company
continues to prioritize investment in the US.
Sasol, the world's largest producer of motor fuels from
coal, has a 50% stake in Arya Sasol Polymer Co., a $900 million
Iranian petrochemical project. The company said last year
it was putting the business up for sale.
CEO David Constable told Dow Jones Newswires
on Monday the company now has a buyer and entered into
talks last month to finalize the deal. He wouldn't provide more
"Strategically it didn't make sense to stay," Mr. Constable
Sanctions from the US and Europe against Iran and the
resulting devaluation of the currency led to the company to
take a 3 billion rand ($327.6 million) writedown on the Iranian
business in the first six months of its financial year ended
At the same time, the company has placed more of its growth
strategy in the US. Sasol is building a two-phase
gas-to-liquids plant in Louisiana, which will produce 96,000
bbl of diesel and other fuels a day when it is completed. The
final investment decision is still about two years off for the
whole project, Mr. Constable said.
To help fund the Louisiana-based project, Sasol said it may issue
another dollar-based bond later in the year.
Dow Jones Newswires