{"id":12354,"date":"2022-01-19T16:35:26","date_gmt":"2022-01-19T16:35:26","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/?p=12354"},"modified":"2022-01-19T15:24:41","modified_gmt":"2022-01-19T15:24:41","slug":"tongaat-defies-small-investors-on-259-milion-rights-issue","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue","title":{"rendered":"Tongaat defies small investors on $259 milion rights issue"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>Tongaat Hulett has won approval for a $259 million (R4 billion) rights issue to help keep the South African sugar maker afloat, in defiance of small investors who said the move hands too much power to a little-known new backer.<\/p>\n

The 132-year-old company secured the required support for the discounted fundraising after a stormy two-hour online meeting on Tuesday, at which several minority shareholders spoke out against the deal. They object to the influence that may be enjoyed by Magister Investments Ltd, a Mauritian company represented by Zimbabwean Hamish Rudland that is underwriting half the deal.<\/p>\n

Investors representing more than 20% of the stock voted against the plan.<\/p>\n

Activist investor David Woollam demanded that Tongaat\u2019s board and management show which of Magister\u2019s investments would support it being a strategic shareholder.<\/p>\n

\u201cI find it extraordinary that a company which is about to take control of Tongaat, we know nothing about, or no one is prepared to talk about,\u201d Woollam said.<\/p>\n

Tongaat is \u201cgoing to have to make this price very, very low,\u201d he added.<\/p>\n

\u201cAnd what that\u2019s going to do, quite simply, is destroy and completely dilute the vast majority of shareholders.\u201d<\/p>\n

Tongaat is raising the cash to bolster the balance sheet following a 2019 accounting scandal that forced the Durban-based firm to restate its financials. The company has said the rights offer \u2013 for more than four times Tongaat\u2019s market value \u2013 may help avoid the forced sale of plantations and other property.<\/p>\n

Not family<\/b><\/p>\n

Magister is an investment company that has holdings in both publicly listed and private companies, Rudland said last month in response to questions sent by Bloomberg. The firm is not part of his family business, one of Zimbabwe\u2019s large corporate dynasties, and not invested in gold and tobacco, he said.<\/p>\n

\u201cMagister believes in the trajectory of the turnaround strategy being implemented under the current board of directors and management,\u201d he said. \u201cOnce the debt is reduced to a sustainable level, Tongaat would be in a position to capitalise on market opportunities.\u201d<\/p>\n

The vote suggests the rights issue was backed by two major money managers, the Public Investment Corporation (PIC), which has an almost 14% stake in Tongaat, and PSG Group.<\/p>\n

Seeking compensation<\/b><\/p>\n

Tongaat is seeking to claw back R450 million from past directors and executives for allegedly inflating profits and the value of certain assets, while civil trials against the former managers are expected to start in 2023.<\/p>\n

The sugar producer will also seek compensation from Deloitte LLP after the auditor signed off on what turned out to be bogus accounts, chair Louis von Zeuner said at the meeting.<\/p>\n

Standard Bank Group, Africa\u2019s biggest lender, is backing Magister. Von Zeuner said Tongaat has been reasured by the bank\u2019s anti-money laundering checks.<\/p>\n

Tongaat\u2019s shares dropped as much as 8.8% after the vote and were trading 3.1% lower as at 13:17 in Johannesburg. That brings the slump since the rights offer announcement to 28%.<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. Tongaat Hulett has won approval for a $259 million (R4 billion) rights issue to help keep the South African sugar maker afloat, in defiance of small investors who said the move hands too much power to a little-known new backer. The 132-year-old company secured the required support for the discounted fundraising after […]<\/p>\n","protected":false},"author":84,"featured_media":12353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[233,281,283],"class_list":["post-12354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nTongaat defies small investors on $259 milion rights issue - Mozambique<\/title>\n<meta name=\"description\" content=\"Tongaat Hulett has won approval for a $259 million (R4 billion) rights issue to help keep the South African sugar maker ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tongaat defies small investors on $259 milion rights issue\" \/>\n<meta property=\"og:description\" content=\"Tongaat Hulett has won approval for a $259 million (R4 billion) rights issue to help keep the South African sugar maker ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue\" \/>\n<meta property=\"og:site_name\" content=\"Mozambique\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-19T16:35:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/01\/img-61e82d1e54b82.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"405\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Tongaat defies small investors on $259 milion rights issue\",\"datePublished\":\"2022-01-19T16:35:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue\"},\"wordCount\":504,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/mozambique\/sites\/64\/2022\/01\/img-61e82d1e54b82.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Mozambique\",\"Mozambique\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue\",\"url\":\"https:\/\/www.africa-press.net\/mozambique\/all-news\/tongaat-defies-small-investors-on-259-milion-rights-issue\",\"name\":\"Tongaat defies small investors on $259 milion rights issue - 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