ROB ROSE: Behind Tongaat’s stormy vote
About 20% of the sugar firm’s beleaguered shareholders voted against a R4bn capital raising plan that will bring in controversial new Zimbabwean-based investor Magister
If Tongaat Hulett CEO Gavin Hudson was expecting a quick rubber stamp on his bid to bring in the opaque Zimbabwe-based Magister as part of a plan to raise R4bn in capital, the bristling anger of the sugar giant’s bruised investors would have surprised him.
On Tuesday, Tongaat Hulett asked investors to vote on the plan to raise R4bn through the new issue of shares, which will likely see Magister end up with between 35% and 60% of the sugar giant. It’s more grim news: shareholders, who have watched Tongaat’s stock slide from R135 four years ago to R5.29 now due to an epic fraud that wiped out R12bn in equity, will now see their investment diluted again...