Tongaat crashes 33% on news it may need to restate results
The embattled sugar-producer is doing a strategic review as it battles high debt levels, saying on Friday ‘certain practices” had come to light
Tongaat Hulett’s share price plunged 33% on Friday, putting it on track for its third daily loss of more 20% in three weeks, after the embattled sugar producer said it may need to restate previous financial results. The group's ongoing strategic and financial review had revealed “certain practices” that may require remedial action, and PwC had been appointed to assist, Tongaat said in a statement. This was being assessed, and remedial action could affect previously reported financial information, the statement read. Tongaat said this had just come to light, and no further details could be reported. Chris Logan of Opportune Investments, and a former investor in Tongaat, said it was almost inevitable that the company would need to restate its results. “This announcement is unsurprising. There are huge holes in their disclosure,” he said. One of the issues could be located in Tongaat’s land division, said Logan, where the company had recognised sales on credit, and was now being forced...
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