South African Executive Simon Baloyi-led Sasol Wins 241 Million Transnet Payout

Sasol wins 241 million Transnet payout after court ruling over pipeline tariffs, boosting investor sentiment and clearing legal uncertainties.

Simon Baloyi leads Sasol recovery with long-term growth plans, eyeing a Lake Charles Chemicals IPO to unlock global shareholder value.

Transnet financial woes deepen as Moodys warns of credit risks despite 2.8 billion state guarantee appeal delays Sasol payout.

Sasol, the Gauteng-headquartered energy and chemicals giants led by South African executive Simon Baloyi, has secured a R4.3 billion 241 million settlement from Transnet SOC Ltd. The payment, which excludes VAT, resolves all pending litigation between the two state-backed firms, according to a Sens announcement issued after the market closed on Friday.

The payout stems from a June 2024 High Court ruling in favor of Saso l and Frances TotalEnergies SE, ordering Transnet to pay R3.9 billion 218.3 million plus accrued interest. The court action related to long-standing disputes over pipeline tariffs and infrastructure costs. The full amount is expected to be settled by June 30, 2025.

While Sasols shares dipped 2 percent on Friday, the stock ended the week up nearly 20 percent following an upbeat Capital Markets Day and strategy update. Analysts expect further gains when the JSE opens on Monday, buoyed by positive investor sentiment over the legal victory and Sasols renewed long-term vision.

However, enforcement of the settlement is currently on hold, pending the outcome of Transnets appeal to the Supreme Court of Appeal. The utility, which operates South Africas ports, rail, and pipeline infrastructure, has also filed a separate R855 million 47.8 million counterclaim against Sasol, with judgment still outstanding.

Transnets payout comes days after Finance Minister Enoch Godongwana announced a fresh R51 billion 2.8 billion government guarantee to shore up the cash-strapped SOE. Moodys Investors Service has flagged the operators deteriorating financial health, warning of potential credit downgrades absent swift restructuring.