SASOL AND TRANSNET SETTLE LEGAL DISPUTES

Rhea-AI Summary

Sasol (SSL) and Transnet have reached a settlement agreement on May 18, 2025, effectively resolving their ongoing legal disputes. The settlement, which became effective on May 23, 2025, requires Transnet to pay R4.3 billion (excluding VAT) to Sasol Oil by June 30, 2025. This agreement settles two major disputes: a previous High Court judgment from June 2024 ordering Transnet to pay R3.9 billion plus interest to Sasol Oil, which was under appeal, and a separate action by Transnet against Sasol Oil seeking to recover R855 million plus interest, where judgment was pending.

Positive

• Settlement agreement provides certainty and resolves all pending legal disputes
• Sasol Oil to receive substantial R4.3 billion payment from Transnet
• Payment to be received relatively quickly - by June 30, 2025

Negative

• Settlement amount of R4.3 billion is only slightly higher than the original R3.9 billion judgment, despite additional interest claims

News Market Reaction – SSL

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On the day this news was published, SSL declined NaN%, reflecting a moderate negative market reaction.

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JOHANNESBURG, May 26, 2025 /PRNewswire/ -- On 20 June 2024, Sasol announced that the High Court of South Africa handed down judgment on 18 June 2024 in favour of Sasol Oil (Pty) Ltd (Sasol Oil) and TotalEnergies Marketing South Africa (Pty) Ltd against Transnet SOC Limited (Transnet).  In terms of that judgment, Transnet was ordered to make payment to Sasol Oil of the amount of R3.9 billion plus interest. 

Transnet has sought leave to appeal that judgment to the Supreme Court of Appeal (SCA).  The application for leave to appeal is currently the subject of a reconsideration application before the SCA.  The effect of this reconsideration application is that the High Court judgment order, and thus the associated payment by Transnet, remains suspended.

In August 2024, the High Court heard an action instituted by Transnet against Sasol Oil to recover an amount of R855 million (exclusive of VAT plus interest) from Sasol Oil.  Judgment in this matter is still pending.

On 18 May 2025, Sasol Oil and Transnet signed an agreement to settle their respective disputes, which became effective on 23 May 2025 having met all suspensive conditions.  In terms of this settlement, Transnet will make a net payment to Sasol Oil of R4.3 billion (exclusive of VAT) on or before 30 June 2025 in full and final settlement of all these disputes.

For further information, please contact:
Sasol Investor Relations,
Tiffany Sydow, VP Investor Relations
Telephone: +27 (0) 71 673 1929
investor.relations@sasol.com

 

 

FAQ

What is the settlement amount between Sasol (SSL) and Transnet in 2025?

Transnet will pay Sasol Oil R4.3 billion (excluding VAT) by June 30, 2025 as part of the settlement agreement.

When will Sasol (SSL) receive the settlement payment from Transnet?

The settlement payment of R4.3 billion is due on or before June 30, 2025.

What legal disputes were settled between Sasol and Transnet?

The settlement resolves two disputes: a R3.9 billion judgment in Sasol's favor under appeal, and Transnet's R855 million claim against Sasol Oil with pending judgment.

When did the settlement agreement between Sasol and Transnet become effective?

The settlement agreement was signed on May 18, 2025, and became effective on May 23, 2025, after meeting all suspensive conditions.