Tongaat Hulett To Sell Zimbabwe Operations In 330-million Deal Amid Currency Woes

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.

Tongaat and Vision Group entities, including Vision Investments and Vision Nominee, have already signed the sales agreement for these Zimbabwean assets. Under the deal, Tongaats 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 Tongaats 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.