News / Local
Tongaat Hulett to sell Zimbabwe operations in ZAR5.9 billion deal
29 Dec 2024 at 08:49hrs | Views
South African agriculture and agri-processing giant, Tongaat Hulett Limited (THL), has announced its decision to offload its Zimbabwe operations to the Vision Group, a South African investment consortium, in a deal valued at ZAR5.9 billion (approximately US$330.05 million). The transaction will see the Vision Group acquire THL's operations in Zimbabwe, including the wholly-owned Triangle Sugar operation and its 50.3% stake in Hippo Valley Estates Limited.
The deal is being structured as a debt-to-asset swap transaction, with Vision Group acquiring THL's Zimbabwean assets through a nominee company, Ball Foundry Holdings Limited (BFHL). The Vision Group comprises several principals, including Terris AgriPro, Remoggo PCC, Guma Agri and Food Security Limited, and Almoiz NA Holdings Limited. The majority of the Vision principals are domiciled in Mauritius and the United Arab Emirates.
According to a statement released on December 21, Tongaat confirmed that a sales agreement had been signed by Vision Investments, Vision Nominee, the Vision parties, and the Vision principals for the acquisition of its Zimbabwe operations. The sale includes 100% of the issued share capital in Triangle Sugar Corporation, as well as claims for repayment of shareholder loans associated with the company. Triangle Sugar is the holding company for Tongaat's operations in Zimbabwe.
Tongaat Hulett said that the purchase consideration for the deal would be settled through a set-off against a portion of the Lender Group claims. The sale is subject to a number of suspensive conditions, and the closing date will be determined once these conditions are fulfilled or waived.
"The transaction that is the subject of this SENS [stock exchange news services] announcement contemplates the sale by THL of all of its shares held, constituting 100% of the issued share capital, and the claims for repayment of the shareholder loans in Triangle Sugar Corporation Limited," the company stated.
Tongaat further explained that the independent valuation of the purchase price would be based on the fair market value, and the decision of the appointed valuer would be final and binding.
The sale forms part of the broader restructuring efforts following Tongaat's selection by business rescue practitioners earlier this year. The company is in the process of implementing "alternative transactions," with the Zimbabwe deal being a crucial step in this ongoing process. The firm also noted that agreements for the sale of its remaining foreign assets are still in progress and will be finalized in due course.
With the deal expected to be completed in early 2025, the acquisition marks a significant development for the Zimbabwean sugar industry. Vision Group's planned takeover of Tongaat's Zimbabwean operations could lead to new opportunities for growth in the local agriculture sector, though further details on future operations are still to be confirmed.
The deal is also seen as part of a broader trend of regional consolidation in the agriculture and agri-processing sectors, with major players positioning themselves for long-term investments in the southern African market.
The deal is being structured as a debt-to-asset swap transaction, with Vision Group acquiring THL's Zimbabwean assets through a nominee company, Ball Foundry Holdings Limited (BFHL). The Vision Group comprises several principals, including Terris AgriPro, Remoggo PCC, Guma Agri and Food Security Limited, and Almoiz NA Holdings Limited. The majority of the Vision principals are domiciled in Mauritius and the United Arab Emirates.
According to a statement released on December 21, Tongaat confirmed that a sales agreement had been signed by Vision Investments, Vision Nominee, the Vision parties, and the Vision principals for the acquisition of its Zimbabwe operations. The sale includes 100% of the issued share capital in Triangle Sugar Corporation, as well as claims for repayment of shareholder loans associated with the company. Triangle Sugar is the holding company for Tongaat's operations in Zimbabwe.
Tongaat Hulett said that the purchase consideration for the deal would be settled through a set-off against a portion of the Lender Group claims. The sale is subject to a number of suspensive conditions, and the closing date will be determined once these conditions are fulfilled or waived.
"The transaction that is the subject of this SENS [stock exchange news services] announcement contemplates the sale by THL of all of its shares held, constituting 100% of the issued share capital, and the claims for repayment of the shareholder loans in Triangle Sugar Corporation Limited," the company stated.
Tongaat further explained that the independent valuation of the purchase price would be based on the fair market value, and the decision of the appointed valuer would be final and binding.
The sale forms part of the broader restructuring efforts following Tongaat's selection by business rescue practitioners earlier this year. The company is in the process of implementing "alternative transactions," with the Zimbabwe deal being a crucial step in this ongoing process. The firm also noted that agreements for the sale of its remaining foreign assets are still in progress and will be finalized in due course.
With the deal expected to be completed in early 2025, the acquisition marks a significant development for the Zimbabwean sugar industry. Vision Group's planned takeover of Tongaat's Zimbabwean operations could lead to new opportunities for growth in the local agriculture sector, though further details on future operations are still to be confirmed.
The deal is also seen as part of a broader trend of regional consolidation in the agriculture and agri-processing sectors, with major players positioning themselves for long-term investments in the southern African market.
Source - newsday
