Potential Acquisition and Cautionary Announcement
SacOil Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1993/000460/06)
JSE Share Code: SCL
SacOil Holdings Limited (“SacOil” or the “Company”)
POTENTIAL ACQUISITION OF PETROLEUM PRODUCTS WHOLESALER
CAUTIONARY ANNOUNCEMENT PURSUANT TO PARAGRAPH 3.9 OF THE JSE LISTINGS REQUIREMENTS
SacOil, the South African based independent African oil and gas company, announces that it is in negotiations on an exclusive basis to acquire a South African fuels wholesaler (the “Proposed Acquisition”), that sells fuel products, namely diesel, petrol and paraffin, on a bulk basis to its customers operating within industrial markets. The Proposed Acquisition owns and operates a substantial fleet of heavy duty tankers. The Board of SacOil believes that the Proposed Acquisition is fully in keeping with the Company’s stated strategy of focussing on cash generating opportunities across the oil and gas value chain and will also significantly increase the volumes of petroleum products sold by the SacOil group of companies, whilst providing the opportunity to achieve economies of scale with the recently acquired Afric Oil business. The integration of the Afric Oil business is progressing well and management will provide further details as part of an operational update to be issued before 31 August 2017.
If concluded, the Proposed Acquisition would materially impact SacOil’s turnover and provide the Company with additional market share in the downstream oil and gas wholesale market which complements its existing upstream assets such as the producing Lagia field in Egypt.
Paragraph 3.9 of the JSE Listings Requirement – Cautionary Announcement
In terms of paragraph 3.9 of the JSE Listings Requirements, immediately after an issuer acquires knowledge of any material price sensitive information and the necessary degree of confidentiality of such information cannot be maintained, an issuer must publish a cautionary announcement.
As such, shareholders are advised that the Proposed Acquisition, if successfully concluded, may have a material effect on the price of the Company’s securities. There can be no guarantee however that the Proposed Acquisition will be concluded and further updates will be provided in due course.
Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until a full announcement is made.
PSG Capital Proprietary Limited
27 July 2017
For further information please contact:
SacOil Holdings Limited
+27 (0)10 591 2260
Buchanan (Financial PR adviser)
Ben Romney / Chris Judd
+44 (0)20 7466 5000
SacOil is a South African based independent African oil and gas company, listed on the JSE. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo, Malawi and Botswana; midstream project relating to crude trading in Nigeria and a majority interest in Afric Oil, the petroleum product wholesaler. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade. The Company continues to evaluate industry opportunities throughout Africa as it seeks to establish itself as a leading, full-cycle pan-African oil and gas company.
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