Namibian food manufacturer Bokomo acquires Tongaat Hulett’s sugar packaging business unit

NAMIBIA – Bokomo Namibia, manufacturer and distributor of quality foods, has confirmed the acquisition of the sugar packaging and distribution business of Tongaat Hulett Namibia (THN), following approval by the Namibian Competition Commission. THN has been described as a strong and well-established business and the merger sees its market-leading brand, Marathon Sugar, join several well-known household brand names manufactured or distributed by Bokomo Namibia. Some of Bokomo’s leading brands including Bokomo wheat flour and maize meal, Weet-bix cereal, Moirs, Liqui-Fruit, Ceres, Fruitree, Caribbean, Safari dried fruit and nuts, John West and Wellington’s tomato…

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Johannesburg Stock Exchange slaps Tongaat Hulett with a fine for non-compliance with listing requirements

SOUTH AFRICA – Johannesburg Stock Exchange (JSE) has issued a public censure and a maximum fine of R7.5 million (US$435,000) on sugar producer Tongaat Hulett Ltd due to non-compliance with its listing requirement. The JSE said the company’s financial information published for the period 2011 to 2018 did not comply with international financial reporting standards and was incorrect, false and misleading. “The accuracy and reliability of financial information published by companies are of critical importance in ensuring a fair, efficient and transparent market,” the JSE said in a statement. The…

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Tongaat Hulett sells sugarcane farm asset for US$21.7m in quest to reduce debt

SOUTH AFRICA – Indebted South African sugar producer Tongaat Hulett has entered into a R375 million (US$21.7m) sale agreement for its Eswatini sugarcane farm with Eswatini’s Public Service Pensions Fund, as part of its strategy to reduce its R13bn (US$753m) debt by R8.1bn (US$469m) by March 2021. The farm, Tambankulu Estates Proprietary Limited, includes two agricultural estates astride the Black Umbuluzi River in northeastern Eswatini, with 3,767ha of fully irrigated land under sugarcane and was producing 62, 000 tons of sucrose a year, reports IoL. Tambankulu is the largest independent…

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Tongaat Hulett stipulates way forward during the pandemic to ensure continuity of operations

ZIMBABWE – Sugar producer Tongaat Hulett Zimbabwe has developed a business continuity plan (BCP) based on the worst case scenario where the COVID-19 pandemic may take a turn for the worst and  the lockdown period maybe extended for most of the season with highly disruptive consequences for the business. Following the outbreak of the coronavirus pandemic and its rapid spread across the globe, Zimbabwe, like many other countries worldwide declared a state of emergency and put the country on lockdown with effect from 30 March 2020. In its latest special…

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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 Hulett reaffirms commitment to cane project in Zimbabwe

ZIMBABWE – Tongaat Hulett Zimbabwe (THZ) has re-affirmed its commitment to the $1 billion Kilimanjaro Sugar Cane Project in Chiredzi, with the firm and some local banks investing more than $320 million. Tongaat, together with local financial institutions CBZ, CABS, ZB Bank and FBC, are financing the project, which seeks to empower Zimbabweans as outgrower farmers and also ramp up aggregate sugar and ethanol output. This is also aimed to help grow the economy in line with President Mnangagwa’s vision to make Zimbabwe an upper middle income country by 2030.…

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Tongaat Hulett increases hectares to be put under winter maize project to 2,000ha

ZIMBABWE – Tongaat Hulett Zimbabwe (THZ) has availed 2 000 hectares for this year’s food initiative that will for the first time also cover traditional grains. This comes as the provincial leadership of Lowveld, south-eastern Zimbabwe has appealed to sugar cane farmers with fallow irrigable land to commit at least one hectare towards the winter maize project and get inputs support from Government under the Command Agriculture initiative, reports the Herald. The response from Lowveld cane farmers willing to contribute in reviving the country’s food security by also growing maize has been…

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Tongaat Hulett to resume sugar production in Mozambique after injecting US$29.5m

MOZAMBIQUE – South African based sugar producer, Tongaat Hulett is set to resume operation at its Mozambican subsidiaries, the Xinavane and Mafambisse sugar mills by April with an investment of about US$29.5 million. The decision comes after a long period of uncertainty arising from possible criminal mismanagement and financial hurdles which led to a forensic probe on its 2018 financials that led to the company’s share trading suspended on both the Johannesburg and London stock exchanges. Beginning of February saw a new dawn for the sugar processor when it resumed…

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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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Tongaat Hulett to sell its starch division as part of debt recovery plan

SOUTH AFRICA – Sugar producer, Tongaat Hulett has entered into negotiations for the potential sale of its starch division as it grapples to reduce its huge debt. The talks come after Tongaat had committed itself to reducing its debt by R8.1billion (US$543.2m) by March 2021 in South Africa and identified a combination of cost savings and cash flow initiatives such as asking shareholders for about R4bn (US$268.2m). According to an iol report, these included the sale of certain non-core assets as well as an equity capital raise and the disposal…

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