Tongaat Hulett’s starch business sale to KKL Group has been rid off Material Adverse Change claims

SOUTH AFRICA – The proposed acquisition transaction of Tongaat Hulett’s starch business by Barloworld subsidiary, KKL Group has reached another significant milestone. In February, Tongaat announced that it was offloading its 100-year-old starch business to KKL Group for R5.35billion (US$342.6m) in an effort to reduce its debt and cover on-going operations. With the occurrence of the COVID-19 pandemic, dispute arose between the two JSE-listed groups, with Barloworld trying to get out of the deal claiming that the pandemic had affected its commercial merits. Tongaat Hulett, which is battling a R13…

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Competition Tribunal of South Africa gives nod to sale of Tongaat Hulett’s starch business

SOUTH AFRICA – The Competition Tribunal of South Africa has approved the acquisition of Tongaat Hulett’s Starch business by Barloworld subsidiary, KKL Group for R5.35billion (US$342.6m). The agriculture and agri-processing company Tongaat Hulett stated that the decision was the third approval in the jurisdictions relevant to the transaction, with the Botswana Competition Commission and the Common Market for Eastern and Southern Africa (Comesa) Competition Commission having already approved the transaction without conditions. The final approval is awaited from the Indonesian Competition Commission, probably in the first week of August, reports…

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Tongaat Hulett’s starch business sale hits major setback as buyer plans exit

SOUTH AFRICA – Struggling sugar producer, Tongaat Hulett has been met by a setback on the sell of its 100-year-old starch business to KLL Group for R5.35billion (US$342.6m), with the company wanting an out of the deal on grounds that the Covid-19 pandemic has affected the commercial merits of the deal. Tongaat had announced in February that it would be selling its starch business to the subsidiary of logistics company Barloworld in an effort to reduce its debt and cover on-going operations. Barloworld has since triggered a material change clause…

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Tongaat Hullet offloads starch business for US$342.6m in debt recovery efforts

SOUTH AFRICA – Tongaat Hulett is offloading its 100-year-old starch business to the subsidiary of logistics company Barloworld for R5.35billion (US$342.6m) in an effort to reduce its debt and cover on-going operations. This comes as the group resumed trading its shares in the JSE in February with the restatement of the group’s September 2018 results. According to ioL, Tongaat has issued a notice to shareholders indicating that the starch business would be sold to KLL Group, a wholly owned subsidiary of Barloworld. Its starch business, established in 1919, is one…

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