'Rights offer deal will see Tongaat Hulett owned by notorious Zimbabwe family'
Tongaat Hulett shareholders have approved a R4 billion rights issue, which would see fundraising to be underwritten by Magister Investments, reports Business Day.
Also endorsed was the appointment of Hamish Rudland as a director and representative of Magister on the board.
The Rudlands are one of Zimbabwe’s most notorious families, writes Business Maverick editor Tim Cohen in an article on Daily Maverick.
The family's Zimbabwean businesses include the Gold Leaf Tobacco group.
At the same time Tongaat Hulett is taking aim at Deloitte, appointing a legal team to pursue a claims process over a misstatement of the company results which goes back years.
In conversation with Ray White, Cohen says the Deloitte claim was "always coming".
You'll recall that Deloitte did pay Steinhoff R1.2 billion for their role in the Steinhoff collapse...Tim Cohen, Editor - Business Maverick
It's rather extraordinary that Tongaat Hulett are championing corporate governance by going after Deloitte at the same time as they have endorsed a deal...Tim Cohen, Editor - Business Maverick
... which will effectively mean that the majority shareholder in the company will end up being a dodgy Zimbabwean group!Tim Cohen, Editor - Business Maverick
When the dust settles on that, Tongaat Hulett will be owned by a very devious family from Zimbabwe.Tim Cohen, Editor - Business Maverick
Listen to Cohen's insights on The Money Show:
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