The business rescue of Tongaat Hulett remains on track although the regulatory approval process is taking longer than anticipated, according to the Vision Consortium.
The consortium led by entrepreneur Robert Gumede has taken a significant role in the business rescue process after it won the bid to rescue the southern African sugar and property group, by purchasing its debt and converting most of it into equity. This has ended months of uncertainty about whether a suitable buyer could be found for Tongaat.
The implementation of the approved and adopted business rescue plan remains on track as all sales agreements have been concluded except the agreement for the sale of the Mozambican subsidiaries, which is expected imminently, Sashir Milne, Vision Group’s Chief People Person said in a note to staff.
Milne said the implementation of the business rescue process could take longer than many expected due to the involvement of multiple regulatory bodies across different geographies and a very complex structure.
He said that last week, the Vision Consortium appointed Gavin Dalgleish as CEO of Vision Group of companies created to acquire Tongaat Hulett.
The appointment would be effective April 1, 2025, the date that was envisaged to be the closing date of the acquisition of Tongaat Hulett. Dalgleish was most recently CEO of Illovo Sugar South Africa.
“Gavin will lead the stabilisation and turnaround of the sugar business as well as its strategic downstream diversification through the next chapter of its long history,” said Milne.
The interim CEO, Rob Aitken, would continue to be part of the Vision Group leadership, and further announcements are expected to be made in due course.
Meanwhile, the business rescue practitioners (BRPs) said Friday it remained their view that there was a reasonable prospect of Tongaat Hulett being rescued in a manner that would balance the rights and interests of all affected persons.
The BRPs said the “Lender Group” and Vision have agreed to extend the payment date, in relation to the balance of the amount owed by Vision to the lender group pursuant to the acquisition by Vision of the Lender Group claims against THL, to March 31, 2025.
The Lender Group are creditors, mostly local banks, that have provided loans and financing to Tongaat Hulett.
“The Lender Group has confirmed that the extension of the payment date is subject to the fulfilment of certain undisclosed conditions, which have not been disclosed to the BRPs,” the BRPs said.
They said they expected to sign agreements for the sale of the Mozambique business before the end of February 2025.
“Vision continues to cooperate fully with the BRPs and executive management of the company to bring implementation of the Asset Transaction to a close as soon as possible,” they said.
“There is a core team focused on satisfying the conditions on which the Plan is contingent and ensuring the implementation of the underlying transaction.”
BUSINESS REPORT