Rudland takes over Tongaat Hulett

21 Jan, 2022 - 00:01 0 Views
Rudland takes over Tongaat Hulett Hamish Rudland

eBusiness Weekly

Tapiwanashe Mangwiro

Zimbabwean business magnet, Hamish Rudland, has taken over 60 percent shareholding in Tongaat Hulett.

The business tycoon through the family run Mauritian-based company, Magister, availed R2 billion that is half of the total R4 billion needed for the transaction.

This will leave Magister being the major shareholder of the company, controlling over 60 percent of the shareholding.

The shareholders voted overwhelmingly in favour of the deal, with both South African PSG Asset Management and the Public Investment Corporation (PIC), who when combined control about 14 percent of the shares, supporting the effective takeover of Tongaat.

The company is rocked with debt, but its bankers insisted that it had reduced its huge debt level in a short space of time, and the Rudlands became the company’s saviour.

Tongaat’s problems began when it was revealed in 2019 that major accounting discrepancies had occurred. The company’s share price plummeted, which had the effect of ballooning its debt as compared to its notional value.

Since then, new management has been battling to satisfy its bankers and has reduced debt substantially by selling parts of the business. The upside of the capital-raising effort is that the company will stay intact and the debt issue will be largely under control.

Tongaat Hulett CEO, Gavin Hudson, said after a vote was held at a special general meeting, the company was “very happy” with the outcome.

“This is a key step in securing the future of Tongaat and provides us with the mandate to further engage with shareholders to raise fresh capital to reduce our unsustainable debt levels.

“We look forward to contributing to a market capitalisation consistent with the company’s value as a leading regional agriculture business, helping to protect the jobs of our 29 000 employees across SADC, and ensuring that Tongaat can continue to be a major socioeconomic contributor to the region.”

But, according to Hamish Rudland, who won a shareholder vote that will gave him control of Tongaat Hulett, a Zimbabwean owning Tongaat is not a handicap. It is just what the troubled company needs.

Zimbabwe’s Hippo Valley and Triangle do bulk of the company’s production and Zimbabwean shareholders know the lay of the land more than anyone, he said.

“With Tongaat’s largest operating business being in Zimbabwe, our local knowledge of the landscape and operating environment will be of significant benefit to Tongaat,” Rudland said before the vote.

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