South African Gas Development Company (SOC) (iGas) and Companhia Mocambiçana de Gasoduto (CMG, Mozambique) have exercised their preemptive rights to acquire a 30% stake in the Republic of Mozambique Pipeline Company (ROMPCO) from the South African oil and petrochemical group Sasol. The transaction will be financed from past and future dividends. CMG and iGas will increase their stake in the gas pipeline company from 25% to 40% each, while Sasol will retain 20%.
ROMPCO owns the 865 km-long gas transmission pipeline from Mozambique to South Africa. Sasol, which owns a 50% stake in ROMPCO in partnership with CMG and iGas (25% each), has initiated the sale of a 30% stake in the company. In May 2021, it concluded a sale and purchase agreement (SPA) with a consortium including Reatile Group Proprietary and the IDEAS Fund for the sale of 30% for an initial amount of ZAR4,145bn (US$293m) and a deferred payment of up to ZAR1bn (up to US$71m). The transaction was subject to pre-emptive rights by other shareholders.