Sasol’s record share plunge on Monday, coming as the oil price slumped and just days after the company credit rating was cut to junk by Moody’s Investors Service, is raising concern among investors that it may need to hold a rights offer as it struggles with a debt burden of about $8bn (about R127.6bn).

Fuel and chemicals producer, SA’s biggest company by sales, delayed an investor call scheduled for Tuesday to March 17, noting that its oil-price exposure for the rest of the financial year was not hedged. While the company had assumed oil would stay in the range of $50-$70 a barrel, Brent crude fell as low as $31 on Monday. Its stock plunged 47% by the close on the JSE, giving it a market value of R53bn...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now