Tongaat Hulett to be bought by Vision Parties, saving thousands of jobs

Tongaat Hulett Limited, which was placed under business rescue in 2022, will be acquired by the Vision Parties after securing credit approval to meet the balance of their payment obligations owed to the Lender Group.

Tongaat Hulett said the credit approval will enable the Vision Parties to complete their acquisition of the claims held by the Consortium of Lenders, who had provided funding to the company before it entered business rescue.

“Vision’s outstanding payment obligation to the Lender Group will be discharged through the aforementioned credit facility.”

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Credit approval of Vision Parties

“The credit approval that the Vision Parties have obtained further demonstrates the veracity of both the Lender Group and Vision Parties’ prior assertions that the Vision Parties were able to fulfil all of their payment obligations to the Lender Group in terms of the Vision Business Rescue Plan,” said the company.

The Lender Group has granted the Vision Parties consent to extend the payment date for the balance of the final purchase consideration from 31 March 2025 to 30 April 2025.

This extension is required to draft and execute the necessary agreements governing the credit approval.

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The journey

Tongaat Hulett explained that its rescue process has been complicated by a number of ill-founded court proceedings brought by minor creditors who have sought to stifle the plan’s successful implementation.

“Since the approval of the plan, all of the applications that have been argued in the High Court have been dismissed, with costs being awarded in Tongaat Hulett and the business rescue practitioners’ favour.”

Despite these difficulties, the practitioners extend their gratitude to all stakeholders who have remained committed to and focused on securing a sustainable outcome that safeguards the future of the business, its employees, growers, suppliers and local communities.

Jobs saved

“The plan’s successful implementation will represent a new chapter for the business, which has an extensive economic footprint in KwaZulu-Natal, Zimbabwe, Mozambique and Botswana.”

“Tongaat Hulett’s continued survival is critical for the regional and national economies, given that in KwaZulu-Natal alone, the business employs 2 600 people, supports 25 500 jobs in surrounding rural communities, and sources sugar from 15 000 small-scale growers.”

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