Grist for the mills: Umhlanga to get more homes after Tongaat sale
Property offload comes amid talks for the potential sale of the firm’s starch business as it battles R13bn debt
Embattled agri-processing group Tongaat Hulett has taken another step towards reducing its debt after the sale of a property in Umhlanga for R167m to JSE-listed property company Balwin Properties.
The sale of 64ha to Balwin, SA’s largest sectional title developer with a R1.77bn market capitalisation, comes after the company, one of the biggest landowners and employers in KwaZulu-Natal, said earlier in February it was in talks for the potential sale of the starch business as it battles a R13bn debt pile.
Tongaat, which has lost 17.71% of its value on the JSE since it resumed trading in early February, intends to reduce SA debt by R8.1bn by March 2021. At Friday’s close of R3.95, the company had a market capitalisation of about R533m. Before the suspension of trade in its shares in June 2019, it closed at R13.21. ..