Dentons advised Czech Republic-based global chemicals producer Draslovka on its agreement to acquire the sodium cyanide business of JSE-listed petrochemical giant Sasol. The value of the transaction is over US $ 95 million. The transaction is expected to be finalized in the first half of 2022 subject to the fulfillment of various conditions precedent, including approvals from the Competition Commission and the South African Reserve Bank.
The acquisition of Sasol represents a major investment on the African continent and is part of Draslovka’s international expansion plan. Draslovka also plans to invest an additional US $ 50 million in upgrading the plant, to enable it to manufacture products that currently need to be imported into South Africa. The funds will also be used to ensure that the plant meets the highest international environmental standards.
Partners Petr Zákoucký (Prague) and Brandon Irsigler (Johannesburg) led the Dentons cross-border team with the help of partners Vanessa Jacklin-Levin and Alishka Singh and senior partner Robert Parring in Johannesburg and partner Jiří Tomola and senior partners Ivo Hartmann, Lucie Kubínyiová and Adam Přerovský in Prague. The legal team also included members of M&A, Regulation and Environment, Energy, Finance and Tax practices in Johannesburg and Prague, including Joel Pandaro, Kirith Haria, Hugo McLachlan, Ameer Jassat, Muhammad Patel, Aabeed Abdullatief, Justina Bodláková, Jan Tylš, Michal Pelikán, Barbora Obračajová, Anna Urbanová and Petr Kotáb.
Petr Zákoucký commented: “We are delighted to have assisted Draslovka in this acquisition and to have played a role in supporting their strategic vision and helping them take a new step in their global growth agenda.
Brandon Irsigler added, “This transaction illustrates Dentons’ ability to provide in-depth advice to clients in their own jurisdiction, as well as the transaction site, essential for complex transactions in Africa. “
Pavel Brůžek, Chairman of the Board of Directors of Draslovka, said: “We are grateful to have had the Dentons team by our side on this journey. They really put it all into this deal and the resources and skills they bring to it are incredible. They are essential to our global growth.
Dentons provided comprehensive buying advice. PwC has acted as a leader in mergers and acquisitions and as a financial advisor.