Tongaat loses Magister as capital raise saviour
Tongaat’s contentious deal with Mauritius-based Magister Investments is off the table, leaving a R2 billion hole in the group’s recapitalisation plan.
In 2021, Magister committed to underwriting R2 billion of Tongaat’s R5 billion rights offer. The deal was meant to be finalised by the end of June, once certain conditions were fulfilled.
But Magister’s hearing, which was due to take place before the Takeover Special Committee, has resulted in both parties calling the deal off.
In a statement on Friday evening, Tongaat said due to the longer than anticipated timelines of the hearing before the committee and Zimbabwean Competition and Tafiff Commission approval, it was clear that the conditions would not be met by the end of June. – fin24