Regulators have approved a request to waive a requirement that Magister Investments make a full buyout offer to Tongaat Hulett shareholders — another step forward for the struggling sugar producer as it presses ahead with a R4bn rights issue.

The waiver from the Takeover Regulation Panel, part of the department of trade, industry & competition, means Magister will not need to take over the group completely should its shareholding cross a 35% threshold. SA law requires that such an offer be made automatically...