logo

Tongaat won’t let starch business go on the cheap, here’s why

Tongaat Hulett’s race to cut its debt by R8.1 billion in 2021 may have hit a stumbling block. The shares of the embattled sugar producer tanked 15 per cent today after it said the R5.3 billion sale of its starch business to Barloworld had reached a stalemate over differences on how Covid19 may impact future profits. The proceeds from the sale of the business were earmarked to lower Tongaat’s debt, which significantly exceeds it market value. Tongaat CEO, Gavin Hudson joins CNBC Africa for more.


Tue May 12 2020 | 15:57:29 GMT+0000 (Coordinated Universal Time)

Share

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.