The next chapter in the tale of Tongaat’s painful fall from grace is set to come to a head at a hastily convened emergency general meeting scheduled for January 18, to vote on a highly dilutive rights offer that has several shareholder activists pointing to potential rats in the cane fields.

The rights issue will bring about a change in control without a mandatory offer, and Chris Logan of Opportune Investments says the management has not informed shareholders that there is a potentially huge claim against Tongaat’s auditors of 83 years, Deloitte, which would in effect nullify the need for the capital raise...