South Africa, Mozambique Exercise Right on Rompco Pipe Stake
- Sale worth $290 million supplants deal with Old Mutual group
- Conclusion will give the countries a 40% share each in Rompco
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South Africa and Mozambique exercised their pre-emptive rights to increase stakes in Sasol Ltd.’s Rompco gas pipeline, which runs between the countries, displacing an earlier deal.
South Africa’s iGas and Mozambique’s Companhia Mocambicana de Gasoduto, or CMG, plan to acquire a 30% share of the line valued at 4.1 billion rand ($290 million), according to a statement on Sunday. Sasol had agreed in May to sell the stake to a group including a unit of financial services firm Old Mutual Ltd. in a transaction that was subject to the waiver or exercise of pre-emptive rights by the shareholders.