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
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...