Tongaat gets green light by Namibia for its packaging sale

DURBAN – Tongaat Hulett said on Thursday that the Namibian Competition Commission had given the sale of its sugar packaging and distribution business to Bokomo Namibia a go-ahead after the proposed transaction met all the suspensive conditions.  

This comes after the agriculture and agri-processing business entered into a sale agreement with Bokomo in November last year to sell its 51 percent stake in the business for R220 million, with the proceeds from the sale expected to reduce the group’s debt of around R13 billion. 

Tongaat said on Thursday that the proposed transaction was subject to suspensive conditions, the last of which was the Namibian Competition Commission approving the transaction. 

“Shareholders are advised that all the suspensive conditions have now been fulfilled. In terms of the sale agreement, the effective transfer of the business arises with effect from July 1, 2020, and the purchase consideration of R220m was settled on July 1,” the group said. 

Tongaat said last year that it wanted to cut its debt by R8.1bn by March 2021 and selling non-core assets and core assets will enable the group to achieve this target.