The Business Rescue Practitioners of Tongaat Hulett Limited, the Industrial Development Corporation of South Africa (IDC), and the Vision Group of companies have concluded a binding agreement that provides a pathway to preserve Tongaat Hulett’s business rescue, maintain trading operations, and support implementation of the approved business rescue plan.
The agreement will see the IDC become a significant shareholder in Vision operating companies across South Africa, Zimbabwe, Mozambique and Botswana, while extending post-commencement finance support to the end of September 2026. It also provides a basis for preserving an estimated 250 000 jobs across the sugar industry value chain and for concluding the steps required for Tongaat Hulett to exit business rescue.
The agreement follows a period of uncertainty during which a liquidation application was filed with the High Court of South Africa in Durban. The parties have chosen instead to work together to keep Tongaat Hulett operating and to protect the value it holds for its employees, growers, suppliers, lenders, and the many communities across the region that depend on it.
On the strength of this historic agreement, the Business Rescue Practitioners will take the steps necessary to withdraw the liquidation application today in front of the judge. Under the agreement, the IDC will extend its post-commencement finance (PCF) support to enable Tongaat Hulett to continue trading while the transaction is implemented.
The parties have also agreed to restructure the IDC’s PCF into equity at the appropriate level as part of the overall transaction framework, supporting a more sustainable capital structure on emergence from business rescue. Vision will provide the funding required to settle and address creditor claims, including the company’s obligations to the South African Sugar Association, in support of the substantial implementation of the approved business rescue plan.
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The parties will conclude new sale agreements for the transfer to Vision of Tongaat Hulett’s South African operations, together with its interests in its subsidiaries in Zimbabwe, Botswana and Mozambique.
For Vision, the agreement reflects a long-term commitment to the South African and regional sugar industry. Vision intends to invest in the recovery of Tongaat Hulett’s operations, to support the growers and suppliers who form the backbone of the value chain, and to safeguard the livelihoods that depend on a strong and stable business.
The parties have committed to work together in good faith and with urgency to bring the transaction to completion.
Their shared objective is to stabilise the business, support the broader sugar value chain, and position the operations for long-term sustainability and recovery.
Mmakgoshi Lekhethe, Chief Executive Officer of the IDC, said: “This agreement reflects the IDC’s commitment to supporting an outcome that safeguards productive capacity, protects livelihoods across the sugar value chain and creates a credible platform for long-term recovery.
“Our role is aligned to our developmental mandate: to preserve industrial capability, support jobs and enable sustainable economic participation in sectors that are important to South Africa and the region.
Robert Gumede, on behalf of Vision, said he is heartened in that the final negotiations and agreement to save the sugar industry, the 250 000 jobs and the Growers investments where Black Business is stepping up to save a 134-year old sugar group operating in the SADC Region.
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“This is a significant milestone for Vision, a Black-owned company that is the second biggest employer in Zimbabwe and Mozambique after the government employees. Vision is confident to turn the fortunes of the companies and hopes the SA government shall from now on protect the jobs and industry from the dumping of foreign produced sugar from Brazil and Thailand.”
“Lastly, Vision is looking forward to working with SASA, Growers, Labour Unions, our key clients and suppliers,” concluded Gumede.
