Troubled Tongaat Hulett on brink of delisting on JSE after shareholder blow
This after Tongaat’s shareholders rejected a debt-for-swap proposal by winning bidder, Vision Consortium.
A sugarcane field belonging to the Tongaat Hulett group. Picture: tongaat.com
JOHANNESBURG - Troubled sugar refinery Tongaat Hulett is on the brink of delisting on the Johannesburg Stock Exchange after the company’s shareholders dealt it a blow recently.
This after Tongaat’s shareholders rejected a debt-for-swap proposal by winning bidder, Vision Consortium.
The move could see Robert Gumede’s Vision go at it independetly, without the backing of shareholders.
Competitor and Mozambican retailer, RGS Group, said that the shareholder vote had paved the way for it to make another play for Tongaat Hulett.
RGS Group spokesperson Keeghan Siphali: "In our view, the Vision business rescue plan is no longer valid, especially now that shareholders have rejected the debt-to-equity swap."
Siphali said there’s no legal mechanism under the existing plan for Vision to take over Tongaat’s assets and wants a shot at reviving the company.
"RGS' proposal includes a direct capital injection into Tongaat Hulett, which would be used to settle the business rescue claims of concurrent creditors, and the lender group."
Tongaat has been in business rescue since 2022, raising concerns over jobs and the local economy.