July 23rd, 2019

Growth of ENAEX business in Africa being explored through possible partnership or joint venture with Sasol

As part of the process initiated by Sasol Limited to incorporate a strategic partner for its explosives and rock fragmentation division, ENAEX S.A., has been selected as a preferred partner to negotiate the terms and conditions for creating a “Joint Venture” with Sasol South Africa Limited, subsidiary of Sasol Limited, to take part in that business.

ENAEX S.A., would be the controlling partner of this partnership, which would be formed by spinning off certain assets and associated activities within the current Explosives value chain of the Base Chemicals business of Sasol South Africa Limited, into a new “Joint Venture” company which will include the associated business activities in both South Africa and the rest of the countries in Southern Africa. The incorporation of ENAEX S.A. into said “Joint Venture” is subject to reaching an agreement on the terms of the respective contracts to form the partnership and obtaining any necessary authorizations from public authorities.

Sasol Limited, listed on the Johannesburg Stock Exchange and New York Stock Exchange, is an international integrated chemicals and energy company, based in South Africa with a presence in 31 countries with more than 31,000 employees. Sasol was founded in 1950 and is today a participant in the Explosives Industry in South Africa, with a presence in Namibia, Botswana, Lesotho and Zambia.

The operation that we report is part of the strategic plan of ENAEX S.A. to continue strengthening its international presence in the most important mining regions of the world. We estimate that the potential transaction will have positive effects on the results of ENAEX S.A. However, it is not possible to quantify that impact at this stage.