Tongaat shares slump 20% after news of rights offer, aimed at cutting crippling debt

The original article can be found here.

Article highlights:

  • Sugar producer Tongaat has proposed a rights issue of up to R4 billion, as it seeks to cut its R6.5 billion debt burden.
  • As part of the proposed transaction, Mauritius-based Magister Investments could hike its holding in the group to a maximum of 60%.
  • CEO Gavin Hudson said that if the rights issue was not successful, it will sell some of its larger sugar assets.