South Africa: Sasol Shares Surge After Joint CEOs Are Fired

Photo: Sasol
(file photo)

Sasol co-chief executives Bongani Nqwababa and Stephen Cornell were sacked after a forensic investigation into the delays and cost overruns at its $13-billion Lake Charles Chemicals Project.

Shares in chemicals and gas-to-liquids producer Sasol surged the most since 1999 after the company fired its joint chief executive officers and cancelled a final dividend payment as it searches for gas feedstock to reduce reliance on coal.

The share surged more than 15% and reached a high of R307.69 during trading in Johannesburg, according to data compiled by Bloomberg. It closed at R298.74 on Monday, 11.78% higher than the previous close. This values the company at R167-billion. All in all, Sasol has lost 51% of its market value over five years.

Earlier in the day, Sasol, which is also listed on the New York Stock Exchange, announced it had parted ways with Bongani Nqwababa and Stephen Cornell, its joint chiefs since July 2016.

Sasol fired the duo after a forensic investigation into the delays and cost overruns at its $13-billion Lake Charles Chemicals Project (LCCP) in Louisiana showed that the project management team, which reported to the duo, had "acted inappropriately, demonstrated lack of competence and was not transparent. The board believes...

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.