Barloworld to buy Tongaat’s starch business for R5.3bn

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Agri-processing group is selling assets to reduce debt, promising jobs will be retained

Agri-processing group Tongaat Hulett will sell its starch business to Barloworld for R5.35bn in a move to reduce its R13bn debt.

Tongaat, which recently reported a headline loss of R314m for the six months to end-September, is selling assets to cut debt by R8.1bn by March 2021. The former blue-chip company also intends to ask shareholders for about R4bn in a rights offer.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

 

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