Sasol will write off R12-billion in debt that was created to bring in black investors in a 2008 scheme that foundered after a fall in oil prices hit the company's share price.
The R28-billion deal was at the time the biggest black economic empowerment deal.
The Inzalo transaction will be unwound in favour of a new R21-billion empowerment scheme, Khanyisa, that will run until 2028 and pass into black hands at least 25% ownership of Sasol's wholly owned subsidiary, Sasol SA.
Market reception to the news was negative, with Sasol's share price dropping just more than 7% - equivalent to about R19-billion of its market capitalisation.
Gas-to-oil fuel giant Sasol said on Wednesday it would buy back the outstanding R12-billion of Inzalo shares from the black investors, effectively cancelling them and allowing the company to write off the shortfall.
The new transaction, Sasol Khanyisa, will be funded only by the company.
"Sasol Khanyisa's success is not dependent on Sasol Limited's share price fluctuations. As no external funding will be used, there will be no cash outflows from Sasol," said joint president and CEO Bongani Nqwababa.
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