Going, going for a song
Sasol is in the spotlight. In “Going, going for a song” Ingham Analytics say that if Sasol management keep flogging the shareholders’ silver as they’re attempting to do with the potential sale of sixteen air separation units located in Secunda to Air Liquide, they’ll have to consider a rights issue after all. They quantify what the replacement cost is of the ASU’s and the impact of a $2bn rights issue. Air Liquide has a return on capital employed of 8.6% say Ingham Analytics so there will be some assumption of at least a cost of capital return, including maintenance and future replacement.
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