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Tanzanian multimillionaire to acquire South Africa’s Tongaat Hulett
What you need to know:
- The acquisition, according to THL, will comprise the complete sugar division in South Africa and investments in Zimbabwe, Mozambique and Botswana (Tongaat Sugar Assets)
Dar es Salaam. Kagera Sugar Limited has said its acquisition of assets of the South Africa-based agribusiness firm Tongaat Hulett Limited (THL) is part of its strategic expansion in Africa.
The acquisition, according to THL, will comprise the complete sugar division in South Africa and investments in Zimbabwe, Mozambique and Botswana (Tongaat Sugar Assets).
Without stating the value of the acquisition, Kagera Sugar managing director Nassor Seif said the transaction is in line with their expansion strategy and its vision of becoming a leading sugar producer on the continent.
“We will extend the core values that have resulted in the success of our group companies to the new Southern African operations to benefit employees, growers, and ultimately the economy of the region,” he said.
Mr Seif was quoted saying that as a company they have been committed to investing significantly in the operations to modernize the plants and expand them to increase production and efficiencies.
Kagera Sugar Limited (Kagera), is a sugar manufacturing company situated in Kagera in the North-Western part of Tanzania.
It is part of a group of companies that are the largest producers of sugar in Tanzania and owns sugar assets in Tanzania, the Democratic Republic of Congo, and the Middle East.
In a statement released by THL on July 21, 2023, their business rescue practitioners (BRPs) reviewed more than 70 interested parties, which was narrowed down to eight and finally, the Tanzanian manufacturer won the bid.
THL which was listed at the Johannesburg Securities Exchange (JSE) was on in July last year suspended due to delays in the publication of the Provisional 2022 Financial Statements and the Audited 2022 Financial Statements.
However according to the firm’s statement, “…The suspension has no material impact on the company’s financial stability or its business operations,”
On their choice to select Kagera Sugar as their strategic equity partner (SEP), the BRPs commented that they believe that the group is financially sound, with a solid track record, and have the capacity to turn around the performance.
“Its exposure to complementary sugar assets in Tanzania and the Democratic Republic of Congo offers relevant technical and operational knowledge to assist the turnaround of THL’s South African sugar assets,” stated in part.
“In addition, the sugar refineries in Oman and Bahrain will provide access to world-class technologies and expertise to improve efficiencies,” they stated.
