Grist for the mills: Umhlanga to get more homes after Tongaat ...

Business

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

Siseko Njobeni

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.  ..

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