Tongaat could resume JSE trading in early 2025
Distressed sugar producer Tongaat Hulett (THL) on Wednesday said its shares may resume trading again on the Johannesburg Stock Exchange (JSE) in early 2025 as it looks for approvals from shareholders for a debt-for-equity swap.
Creditors of Tongaat, which entered business rescue in late 2022, had approved a business plan in January that would see it retain its listing on the local bourse. This also needs shareholder approval, as the plan entails issuing new shares in exchange for debt, with the company releasing a circular this week and setting a date for a general meeting of 8 August.
The Vision plan will see the consortium subscribe for shares, after which it will own 97.3% of the company, with existing shareholders retaining just 2.7%. This entails Vision acquiring about R8.5 billion of debt, strengthening Tongaat's balance sheet by R4.9 billion through the debt-for-equity swap, while the remaining R3.6 billion - retained by Vision - will be restructured on terms that are expected to be more favourable to the company.
Should Vision fail to get approval, it intends to substitute the debt-for-equity swap for an acquisition of the group's assets, which doesn't require shareholder approval, and which would leave them with nothing, the circular read. Should both fail, Tongaat will be liquidated.
Shares could potentially start trading again by as early as the beginning of 2025, if all the necessary requirements in terms of the JSE listing can be complied with, it said, following which shareholders would have the option to sell.
Vision is a consortium made up of Terris Sugar, part of the Terris Fund, Robert Gumede's Guma, Remoggo - which is registered in Mauritius - and Almoiz, one of Pakistan's largest agribusiness companies.
"The Vision parties have been tracking the performance of THL for approximately five years and believe the underlying assets and operating segments have value with the appropriate financing structures and operational expertise that the Vision parties bring," the circular read.
-News24
Creditors of Tongaat, which entered business rescue in late 2022, had approved a business plan in January that would see it retain its listing on the local bourse. This also needs shareholder approval, as the plan entails issuing new shares in exchange for debt, with the company releasing a circular this week and setting a date for a general meeting of 8 August.
The Vision plan will see the consortium subscribe for shares, after which it will own 97.3% of the company, with existing shareholders retaining just 2.7%. This entails Vision acquiring about R8.5 billion of debt, strengthening Tongaat's balance sheet by R4.9 billion through the debt-for-equity swap, while the remaining R3.6 billion - retained by Vision - will be restructured on terms that are expected to be more favourable to the company.
Should Vision fail to get approval, it intends to substitute the debt-for-equity swap for an acquisition of the group's assets, which doesn't require shareholder approval, and which would leave them with nothing, the circular read. Should both fail, Tongaat will be liquidated.
Shares could potentially start trading again by as early as the beginning of 2025, if all the necessary requirements in terms of the JSE listing can be complied with, it said, following which shareholders would have the option to sell.
Vision is a consortium made up of Terris Sugar, part of the Terris Fund, Robert Gumede's Guma, Remoggo - which is registered in Mauritius - and Almoiz, one of Pakistan's largest agribusiness companies.
"The Vision parties have been tracking the performance of THL for approximately five years and believe the underlying assets and operating segments have value with the appropriate financing structures and operational expertise that the Vision parties bring," the circular read.
-News24
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