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Tongaat suspends shares due to results delay

The company is preparing to restate its financial results.

Shares in South African sugar producer Tongaat Hulett were suspended from trade on the Johannesburg and London stock exchanges on Monday at the company’s request as it prepares to restate its financial results.

Tongaat’s shares have fallen 42% since it first said in April that it would restate its 2018 financial results.

Last month it also delayed the release of its 2019 financial results, for the year ended March 2019, to October from May.

Read: Steinhoff, Tongaat woes raise South African auditor scrutiny

“Owing to the Board’s concern that there is insufficient information in the market to enable investors to make informed decisions, the Board has voluntarily approached the JSE with a request for a suspension of the listing of the Company’s securities,” Tongaat said in a statement on Monday.

It reiterated that it aimed to publish its financial results for the year ended March 2019 by the end of October and said its shares would resume trade then, or earlier if sufficiently reliable information can be released.

Its shares were down 5.30% at R13.21 in Johannesburg when they were suspended just after 1300 GMT, in the middle of the trading day.

The company said it was continuing with its strategic review and turnaround strategy that would include cost reductions, the sale of possible assets and restructuring of operations.

Tongaat, which has operations in South Africa, Mozambique and Zimbabwe, said last month that its 2018 results could face a potential hit of up to R4.5 billion ($306 million) following a review of its accounting practices.

Tongaat, which has a primary listing on the Johannesburg stock exchange and a secondary listing on the London stock Exchange, had said in April that it would restate prior financial information after a formal review revealed certain accounting practices that needed to be re-examined. 

Read the full Sens announcement here.

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Cant be good if it is only going to be published now at end of October.

Just like the government SOEs.
The downfall of SA. Greed.

How many active fund managers saw this one coming?

Don’t know; but I know 0 index funds picked it up too… 😉

Satrix Divi doesn’t hold it, Satrix top 40 doesn’t hold it….. but I know what you mean.

We did…I am sure we will see a list of funds who holds Tongaat within the next couple of days

Well, well, well…… the JSE has just “opened itself up” to being sued for NOT suspending Steinhoff’s shares.

To merely say that Steinhoff’s primary listing is on the Frankfurt Stock Exchange and therefore could not suspend on the shares on the JSE is so weak it’s laughable.

Class Action Groups, Pension Funds, Mutual Funds, PIC, individuals sue the JSE for negligence, losses and damages.

You see, how many times do I have to tell you? Sugar is bad for you!

It would be interesting to know if they have been ripping the farmers off too as there might not be any crops left to cut their cost down further?

It is not sustainable to farm at below cost.

Sugar and grain farming is not sustainable under the ANC government. The DTI manufactured Tongaat’s demise when they dismantled the import tariffs on sugar. The cruel reality is that no business can be internationally competitive under an ANC regime. Luthuli House is a black hole at the center of our economy. Not even the best management teams in the world can escape the gravitational force of socialism.

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