Tongaat hits 25-year low as sugar maker may restate finances | Fin24
 
  • Load Shedding

    Find the latest load shedding schedules for Joburg, Durban, Cape Town, and other cities.

  • Peter Moyo

    The former Old Mutual CEO says he wants its directors jailed for six months without option of a fine.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Tongaat hits 25-year low as sugar maker may restate finances

Mar 11 2019 10:44
Liezel Hill, Bloomberg

Tongaat dropped to the lowest since January 1994 in the second day of declines since the South African sugar producer warned that “certain practices” have been discovered that may lead to a restatement of earlier financial information.

Tongaat has hired PwC to assist with reviewing the issue and said it doesn’t have enough information to provide more details yet.

Key Insights

It’s been a tumultuous few weeks for Tongaat. The shares plummeted 20% on February 22 after the company warned that it would post a full-year loss and planned to hold discussions with lenders. The latest issues were identified as part of a wide-ranging strategic and financial review of the company initiated by new Chief Executive Officer Gavin Hudson.

It’s working on a turnaround strategy, but said on Friday that it’s still at an early stage.

Tongaat has told staff to preserve all information, including data, documents and emails, and cooperate fully with the PwC team, South Africa’s Business Day newspaper said Monday. 

Market Reaction

Tongaat dropped as much as 18% on Monday, following a 28% decline on Friday. The stock is down 65% this year, valuing the company at R2.4 billion. 

NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2019

Struggling power utility Eskom will take centre stage at this year's mini budget
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...