Ton­gaat may sell its HQ

STAG­GER­ING: GROUP’S DEBT NOW STANDS AT AL­MOST R13 BIL­LION

The Citizen (KZN) - - Business - Suren Naidoo

Com­pany hop­ing to raise R4 bil­lion in new eq­uity on the JSE.

bring down Ton­gaat Hulett’s debt. This in­cludes the sale of non­core and cer­tain other as­sets such as Amanz­im­nyama, but also an eq­uity raise.”

Money­web un­der­stands that sev­eral prop­erty com­pa­nies and KwaZulu-Natal mag­nates have made of­fers for the Amanz­im­nyama prop­erty, but are not keen on Ton­gaat Hulett’s ask­ing price of around R200 mil­lion.

Hud­son would not go into de­tail on land dis­pos­als un­der con­sid­er­a­tion or the land sales that have been con­cluded in the half-year pe­riod. But he did say land sales in a tough prop­erty mar­ket was a pos­i­tive and would see about 141 000m2 of new de­vel­op­ment.

On the planned eq­uity raise, Hud­son said he hoped it could be fi­nalised by the first quar­ter of this year. Ton­gaat Hulett is hop­ing to raise as much as R4 bil­lion in new eq­uity on the JSE.

“We have al­ready be­gun talk­ing to stake­hold­ers about an eq­uity raise and the lift­ing of the sus­pen­sion of trade in our shares on the JSE is part of the process,” he said.

As part of the re­struc­tur­ing plan, the group is aim­ing to bring down its debt by about R8.1 bil­lion by next year. It has al­ready em­barked on cost-cut­ting to the tune of more than R1 bil­lion, which in­cluded sig­nif­i­cant re­trench­ments last year.

The group on Fri­day posted a head­line loss of R314 mil­lion for its half-year to Septem­ber, which was an “im­prove­ment” com­pared with the R354 mil­lion re­stated loss for the com­pa­ra­ble six months of 2018.

Its rev­enue was down 1.5% to R8.085 bil­lion for the pe­riod, while op­er­at­ing profit was up sharply from R315 mil­lion to al­most R1.3 bil­lion. With the group re­port­ing a ba­sic loss per share of 235 cents, Ton­gaat de­clared no in­terim div­i­dend.

How­ever, it said the ba­sic loss per share was also an im­prove­ment com­pared with the 356 cents loss per share for the cor­re­spond­ing pe­riod.

If there is fair value, we will con­sider all op­tions

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.