Table of Contents
Key Points
- Tongaat Hulett will divest its Zimbabwean assets in a $330 million deal to Vision Group, part of ongoing restructuring efforts.
- The sale includes Tongaat’s Triangle Sugar operation and a 50.3% stake in Hippo Valley Estates, settled via a debt-to-asset swap.
- The divestiture responds to Zimbabwe's economic challenges, including instability from the newly introduced gold-backed ZiG currency.
Tongaat Hulett Limited, an agri-business group controlled by Zimbabwe's influential Rudland family, is set to divest its Zimbabwean operations in a $330 million transaction. This move comes as Zimbabwe continues to grapple with challenges related to its newly introduced gold-backed currency, ZiG, which aims to stabilize the country's volatile monetary system.
The divestiture will see Tongaat's Triangle Sugar operation and its 50.3 percent stake in Hippo Valley Estates Limited sold to Vision Group, a consortium of investors that includes Terris AgriPro (Mauritius), Remoggo (Mauritius) PCC, Guma Agri (Mauritius), Food Security Limited (UAE), and Almoiz NA Holdings Limited (UAE). Valued at R5.9 billion ($330 million), the deal will be executed via a debt-to-asset swap, a component of Tongaat's restructuring process.
Deal set for Tongaat’s Zimbabwe assets
Tongaat and Vision Group entities, including Vision Investments and Vision Nominee, have already signed the sales agreement for these Zimbabwean assets. Under the deal, Tongaat’s entire shareholding in Triangle Sugar Corporation and related shareholder loan claims will be transferred to Vision Nominee, a Mauritian entity representing the group's beneficial owners.
“The purchase consideration will be settled through a set-off against a portion of the Lender Group claims,” said Tongaat in a statement. The transaction remains subject to several suspensive conditions, with additional agreements for the sale of foreign assets expected once negotiations are finalized.
The deal is part of Tongaat’s broader business rescue efforts, initiated in early 2024. Vision Group was selected by the business rescue practitioners under the "adopted plan" and is legally obligated to implement alternative transactions that support the company's financial recovery.
Tongaat Hulett sells Zimbabwean assets
Tongaat remains a key player in Southern Africa's agri-business sector, producing sugar, ethanol, animal feeds, and cattle. Listed on the Johannesburg Stock Exchange (JSE) since 1952, It has roots dating back to the 1800s when Hulett Corporation merged with Tongaat Group.
The divestiture comes amid Zimbabwe's ongoing struggles with the ZiG currency, aimed at restoring financial confidence. Economic instability has led businesses like Tongaat to reassess investments. Despite these challenges, Tongaat's Zimbabwean operations, including Triangle Sugar and Hippo Valley Estates, continue to support local economic development by creating jobs and enhancing food security.
Hamish Rudland, a Zimbabwean businessman, and his family hold a majority stake in Tongaat through a Mauritius-based investment entity. Renowned for his business acumen and commitment to environmental conservation, Rudland has built a reputation as a visionary. He emphasizes the importance of driving economic growth while maintaining a strong focus on ecological sustainability, a balance that continues to shape his approach to business.
