February 28th 2020
South Africa’s Tongaat Hulett to sell starch business to Barloworld.
Tongaat Hulett, South Africa’s heavily indebted sugar producer, said on Friday it would sell its starch business to Barloworld for 5.35 billion rand ($351.10 million), including debt. Tongaat will use the proceeds to reduce its debt.
“This was a compelling offer for our starch business. Our number one priority is to ensure the long-term sustainability of Tongaat and a key element of this is paying down our debt as quickly as possible. Our agreement is to reduce debt by R8.1-billion by March 2021 and we have already met and exceeded the first debt repayment milestone agreed with our lenders,” Tongaat CE Gavin Hudson said in a statement on Friday.