Energy giant, Shell, has confirmed its intention to divest its shareholding in Shell Downstream South Africa (SDSA).
This follows news reports by the City Press and the Sunday Times at the weekend, citing conflict with Thebe Investments, Shells BEE partner, over its stake in the company.
Pam Ntaka, spokesperson of SDSA, told Energize : Shell has undertaken a comprehensive review of the Downstream and Renewables businesses across all regions and markets in line with Shells focus on performance, discipline, and simplification. As a result, Shell has decided to reshape the Downstream portfolio and intends to divest our shareholding in Shell Downstream South Africa (SDSA). Considering SDSAs illustrious history, this decision was not taken lightly.
Over more than 120 years in South Africa, Shell has built an enormous legacy that we can all be proud of. We have made a significant contribution to nation-building by powering lives through our products and services, our people, promoting equity and inclusion, and making a positive impact on society through our social investment programmes. We have also built one of South Africas most recognisable and loved brands, said Ntaka.
Ntaka said Shell would oversee the transition of SDSA to new ownership. During the divestment process, we will work to preserve SDSAs operating capabilities, maintain the Shell brand presence, and secure the best possible outcome for our people and customers in South Africa under new ownership.
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