Sasol Sells Sodium Cyanide Business to Draslovka
South Africa’s Sasol has agreed to sell its sodium cyanide business to a local subsidiary of Draslovka Holding, a privately owned Czech-based company, for 1.46 billion Rand, or approximately $101 million. The deal, part of Sasol’s ongoing asset divestment program, is expected to close in the first half of 2022, subject to antitrust clearance and other license and permit regulatory approvals.
Draslovka specializes in the manufacture, distribution and application of specialty chemicals globally, particularly cyanide-based substances. The company has more than 100 years of experience in cyanide chemistry and production for synthesis, mining and industrial and agricultural applications, with operations in the Czech Republic, South Africa, Australia, New Zealand and India.
“This acquisition will enable Draslovka not only to better serve South Africa’s mining and related industries, but also to strengthen South Africa’s exports in the longer term and provide better access to the company’s s leading agricultural materials,” said CEO Pavel Brůžek.
The acquisition is Draslovka’s first major investment in Africa and forms part of its international expansion plans. The company will take full operational control of the cyanide business, while Sasol will continue to supply key feedstocks, utilities and site services on an arm’s length basis.
Draslovka will use its cyanide expertise to bring new technologies and capabilities to the process and will invest another $50 million to modernize and expand the plant, also ensuring it meets global environmental standards. The company has partnered with Navuka Investment Holdings as its broad-based black economic empowerment (B-BBEE) partner. Navuka will own 25% plus one share of the South African operations.
Sasol added that it intends to explore the potential for business development opportunities by Draslovka, which could result in further synergies at the site.
Author: Elaine Burridge, Freelance Journalist
