New consortium of cane growers plans to buy Tongaat-Hullett’s assets
Word reaching BusinessTech Africa is that a group of sugarcane growers who now supply Tongaat Hulett with cane has expressed interest in purchasing Tongaat's South African mills refinery. The group wants to also buy animal feeds, and brands in a proposal to the sugar producer, Tongaat Hullett’s business rescue specialists. MoneyWeb business has it that
New consortium of cane growers plans to buy Tongaat-Hullett’s assets
Word reaching BusinessTech Africa is that a group of sugarcane growers who now supply Tongaat Hulett with cane has expressed interest in purchasing Tongaat’s South African mills refinery.
The group wants to also buy animal feeds, and brands in a proposal to the sugar producer, Tongaat Hullett’s business rescue specialists.
MoneyWeb business has it that the consortium, which would take shape under the limited liability firm NewCo once the purchase is approved.
The group said in a statement circulated on Tuesday that it is stepping up to secure the sustainability of farming businesses connected to Tongaat’s operations in the North Coast of KwaZulu-Natal.
According to Simon Cleasby, a spokesman for NewCo, he said the proposal is for the acquisition of assets, including the operating mills at Maidstone, Amatikulu, and Felixton,
“This includes the shuttered factory at Darnall, the Huletts Refinery, Voermol animal feeds (sic), and all related brands and trademarks,” Cleasby said.
“The proposal is for the acquisition of assets including the operating mills at Maidstone, Amatikulu, and Felixton, the mothballed factory at Darnall, the Huletts Refinery, Voermol animal feeds (sic), and all associated brands and trademarks.”
Should the deal be a success, the consortium says it could protect the livelihoods and jobs of about 11 000 small-scale growers, as well as 20 000 jobs in the cane-growing industry.
“It is also an opportunity for commercial growers and small-scale growers to align and optimise synergies for mutual viability and sustainability over the longer term,” added the spokesman.
However, NewCo could not reveal the plans on when and how it will source funding for the project.
“Funding arrangements will be concluded after binding letters of intent to finance the acquisition of NewCo have been signed, with the financial model having been fully investigated and approved,” Cleasby said.
“The potential inclusion of strategic partners in NewCo, who have access to finance and appropriate technical skills, will also then be actively considered.”
