Tongaat Hulett’s business rescue practitioners have chosen Tanzanian sugar producer Kagera Sugar as the buyer for the debt-laden business.
- Kagera Sugar was chosen out of eight bidders and is part of a group of companies which are the largest producers of sugar in Tanzania and it owns sugar assets in Tanzania, the Democratic Republic of Congo, and the Middle East.
- Creditors will need to approve the buyer when they vote on the updated business plan in September.
- Tongaat Hulett is a South African agri-processing company that specializes in sugar production.
- The company has been struggling with debt and financial challenges in recent years and entered business rescue proceedings in 2019.
- Kagera Sugar’s acquisition of Tongaat Hulett is expected to provide a boost to the Tanzanian sugar industry, which has also been facing challenges.
- The deal is subject to regulatory approval from various countries where Tongaat Hulett operates, including South Africa, Zimbabwe, Mozambique, and Eswatini.
- The acquisition of Tongaat Hulett by Kagera Sugar is expected to be completed in early 2024.