Ugly scenes as investors flee the Tongaat mess on the JSE

Business

Ugly scenes as investors flee the Tongaat mess on the JSE

Fire sale in the shares suggests many shareholders do not have the appetite for a turnaround strategy

Siseko Njobeni

Tongaat Hulett received a nasty reception on its return to the JSE after a suspension of about seven months.

Despite efforts by the troubled company’s new board and relatively new management to restore trust in the 127-year-old firm, a large number of shareholders could not wait to dump the stock.

As soon as the market opened on Monday, there was a massive selloff, with Tongaat stock falling as much as 67% (https://www.sharenet.co.za/v3/quickshare.php?scode=TON) in early trade. This is a stark reminder of how bad things have been at the company under the previous management, which stands accused of gross misrepresentation of financial information...

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