Business rescue practitioners snub proposal to snatch Tongaat Hulett from mogul Robert Gumede
Tongaat landed itself a sweet deal at the beginning of 2024 after the company’s creditors finally approved its business rescue plan. But it remains at the centre of contestation.
A sugarcane field belonging to the Tongaat Hulett group. Picture: tongaat.com
JOHANNESBURG - Business rescue practitioners at Tongaat Hulett have snubbed a proposal attempting to snatch the troubled sugar refinery from business mogul and African National Congress (ANC) funder Robert Gumede.
Tongaat landed itself a sweet deal at the beginning of 2024 after the company’s creditors finally approved its business rescue plan. But it remains at the centre of contestation.
Vision Consortium, linked to Gumede and Rute Moyo, acquired the sugar giant in a heated contest with Mozambican retailer and agricultural company the RGS Group.
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Tongaat has been in business rescue since 2022.
While the race for an equity partner was settled, a new firm has now tried to enter the fray.
In an update, Tongaat’s business rescue practitioners confirm receiving an alternative proposal touted to have a more favourable financial outcome for shareholders.
But they said they’re legally precluded from considering, proposing, or even adopting a new plan after a deal was struck with Vision Consortium.