Tongaat Hulett’s (THL) shares have been suspended from trading on the Johannesburg Stock Exchange (JSE) since July 2022. The company entered business rescue in October that year, and the JSE’s decision to remove its listing comes as the joint business rescue practitioners (BRPs) continue working towards the sale of THL’s businesses and assets as going concerns.
Speaking to Farmer’s Weekly, the BRPs said the delisting was contemplated in the business rescue plan adopted by creditors in January 2024 and did not change the company’s existing position.
“As a step contemplated in the plan, [the delisting] also indicates progress towards the completion of the business rescue plan,” they said.
The BRPs added that delisting would not affect the business rescue proceedings or signal the closure of THL’s operating businesses. The mills continue to operate, and the change would have no effect on employees or growers.
The JSE initiated the delisting process, informing THL of its intention to remove the listing and inviting representations. The BRPs and THL’s current directors did not oppose the decision.
According to the BRPs, the shares will be held as unlisted certificated shares by Computershare, which manages shareholder records and share-related administration on THL’s behalf, with share statements due to be issued by 12 November 2026. No offer or payment will be made to shareholders, and the adopted business rescue plan does not expect any value to accrue to them.
Although THL will no longer publish announcements on the Stock Exchange News Service after delisting, the BRPs said business rescue notices and monthly status reports would remain available on the company’s website and be sent directly to affected persons.
Funding deadline and sale agreements
A key development in the business rescue process is the Industrial Development Corporation’s (IDC) extension of its R2,5 billion post-commencement finance (PCF) facility and final repayment date to 30 November 2026.
The facility continues to support THL’s working capital requirements and operations while the BRPs work to finalise the transactions necessary to implement the business rescue plan.
According to the BRPs, amounts owed under the facility must be settled in full before THL’s businesses and assets can be sold and transferred as going concerns, unless the IDC agrees to alternative arrangements at its discretion.
“The main focus before the deadline is therefore to finalise the remaining transaction agreements and the alternative arrangements with the IDC and Vision [Consortium] that allow the sale to proceed,” they said.
The Vision Consortium is involved in the proposed acquisition of Tongaat Hulett’s businesses and assets.
The BRPs confirmed that sale agreements relating to Tongaat Hulett Sugar South Africa, which holds certain Mozambique operations, as well as THL’s Botswana and Zimbabwe businesses, had been signed.
They expected agreements covering THL’s South African operations and the balance of its Mozambique investments to be signed shortly.
Growers and other affected stakeholders would be updated as milestones were confirmed, through monthly status reports and direct communication.
South African Sugar Association (SASA) CEO Sifiso Mhlaba said the association remained optimistic about the successful implementation of the approved business rescue plan.
He added that continued engagement with stakeholders remained essential, although SASA was unable to comment in detail on the process.
Growers depend on continued milling operations
THL’s future is particularly significant for sugar cane growers who depend on its mills to process their crops. Any disruption could affect not only growers and mill workers but also the broader sugar value chain.
Mhlaba said THL, like the country’s other five milling companies, played a significant role in the industry.
“Growers and millers are interdependent, therefore any disruption in their operations is bound to have a negative impact on the whole value chain,” he said.
The BRPs said the PCF facility supported the working capital needed to maintain operations during the business rescue process, including the crushing season. They added that THL continued to manage its liquidity carefully and remained committed to meeting its obligations to growers.
Import pressure threatens long-term viability
However, operating conditions in the current season have been challenging. An industry-wide strike from 18 August to 8 September affected sugar production, while the BRPs identified imported sugar as the biggest external threat facing the company and the wider industry.
THL reported that 262 192t of sugar were imported during the first five months of the 2026/27 season, from April to August 2026, adding pressure to local producers. Duty-free sugar from Eswatini accounted for 64% of these imports.
In late August 2026, The International Trade Administration Commission of South Africa increased the dollar-based reference price for sugar from US$680/t to US$785/t (around R12 982/t). The BRPs said this offered some additional protection but fell short of the US$905/t requested by SASA in October 2024.
They also noted that the increase did not apply to sugar from Eswatini and did not address imported stock already in the market.
“Further measures will be needed, including a more responsive tariff mechanism and consideration of safeguards, to give the industry and its growers a sustainable future,” the BRPs said.
Mhlaba said the successful implementation of the four key pillars of the Sugarcane Value Chain Master Plan to 2030 was critical to ensuring the long-term sustainability of industry participants and their operations.
