The High Court has dismissed a bid to block Vision Group’s acquisition of Tongaat Hulett. This means that the business rescue process of the sugar company can proceed without any immediate legal hurdles. RSG Group, a rival bidder, had lodged an urgent interdict against the process, arguing that Vision had failed to raise the necessary funds.
However, the court ruled that RSG Group had failed to demonstrate grounds for urgency and did not satisfy the requirements for an interdict. The court ordered RSG Group to pay the costs of the application.
The Vision acquisition involves paying R8.5 billion to creditors in exchange for Tongaat Hulett’s sugar assets. This deal is crucial to the rescue operation, which began in 2022 after suspicious bookkeeping practices were discovered.
The judgment also secures more than R2 billion in post-commencement funding by the Industrial Development Corporation (IDC) for Tongaat Hulett. The IDC had warned that it would cancel the funding if the court entertained the RSG Group interdict request.
The court’s decision is a partial win for Robert Gumede, the tech billionaire leading the Vision Group consortium. However, RSG Group still has the option to pursue another legal challenge to quash the business rescue plan entirely.