10 October 2008
column
Johannesburg — SASOL may have been branded the "paraffin mafia" after competition authorities in the European Union (EU) found the company to have been the leader of a cartel, but the local directors are probably going to benefit.
The group has to stump up a hefty R3,7bn in fines to the EU.
Yesterday it was announced that chief financial officer Christine Ramon and nonexecutive directors Imogen Mkhize, and Tom Wixley had bought shares this week.
Sasol's share price has suffered in the past month thanks to the fall in the oil price. But it was particularly hard hit last week by news of the EU fine.
Since then Ramon has bought share worth more than R2m, Wixley bought shares worth R327000 and Mkhize snapped up 400 shares for R109392.
While it should be noted that directors buying shares is often a sign of confidence in the company, it is ironic that if the oil price firms a bit (as is expected in the long term) and the rand continues to be weak against the dollar, Sasol's share price should rise.
In that case, the three directors who bought stock this week will make a killing, partly on the back of the EU's ruling.
Interestingly, Sasol's share price rose 1,78% to R263 on the JSE yesterday, in spite of the oil price falling by more than $1, which suggests the stock rose with the JSE as a whole, which was up 1,42%.
Still, the share price is well off its 12-month high of R518.
Oil prices have fallen due to expectations of lower demand due to the global credit crisis.
Opec is so unhappy about the situation that it has planned a special meeting next month. The outcome of that doesn't sound like good news, except, of course, if you're a Sasol director.
The Bottom Line is edited by Edward West
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