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Safripol and Sasol Ethylene Supply Disputes: Update
KAP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1978/000181/06)
Share code: KAP
ISIN: ZAE000171963
Company Alpha Code: KAP
LEI code: 3789001F51BC0045FD42
('KAP' or 'the Company')
SAFRIPOL AND SASOL ETHYLENE SUPPLY DISPUTES: UPDATE
Sasol South Africa Limited ("Sasol") supplies propylene and ethylene to the Company's subsidiary, Safripol
Proprietary Limited ("Safripol"), in terms of evergreen supply agreements. Propylene and ethylene are the primary
raw materials utilised in Safripol's manufacturing of polypropylene and high-density polyethylene.
The Company has previously advised shareholders via SENS and in its financial statements and integrated annual
report that Safripol and Sasol are engaged in disputes regarding their ethylene supply agreement.
The dispute regarding the price of ethylene, has now been determined in favour of Safripol (with costs) to the effect
that the Company's interpretation of the pricing principles of the supply agreement, have been upheld by the
arbitrator. Save that, in limited circumstances, Sasol may apply for a High Court review of the award, the price
dispute has been finally disposed of in terms of the supply agreement. This is a significant development for Safripol.
The dispute relating to Sasol's volume commitment in terms of the supply agreement remains in progress.
Safripol had lodged a complaint against Sasol at the Competition Commission and requested the Commission to
investigate expeditiously whether Sasol's conduct, as the monopoly ethylene supplier in South Africa, is in
contravention of the Competition Act. The Commission's investigation is ongoing.
Safripol also applied to the Competition Tribunal for interim relief under section 49C of the Competition Act. The
matter was heard before the Competition Tribunal and judgement remains outstanding.
The Company and its legal advisors remain confident of the Company's prospects in the various matters. Given
the complex nature of these matters, it is anticipated that the relevant resolution processes will be lengthy. The
Company will update shareholders of material developments when appropriate.
Stellenbosch
2 March 2026
Equity and Debt Sponsor
PSG Capital
Date: 02-03-2026 07:30:00
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