Zimbabwe’s Rudland family could take over one of Southern Africa’s biggest sugar producers, Tongaat Hulett, by underwriting the company’s R4 billion rights issue.
Magister, a company represented by Hamish Rudland and registered in Mauritius, has just recently engineered the consolidation of Zimplow and Unifreight subsidiaries. Magister could now expand its investments by holding up to 60% of Tongaat after the share offer, executives said.
This would give the Rudlands control of a company that produces 43% of South Africa’s sugar and accounts for over half of Zimbabwe’s sugar sales. Tongaat is also the major producer in Mozambique and Botswana.
Magister already owns 0.15% in Tongaat and has offered to underwrite half of the proposed rights issue, some R2 billion, Tongaat said in a statement.
“We have agreed that they (Magister) get a board seat for every 20% of shares that they own, with a maximum cap of 60%,” according to Tongaat CEO Gavin Hudson.
“We assume that they would be a large shareholder by the end of the rights offer. But that will be determined in January or February next year.”
If minority shareholders do not take up the remaining stock, according to Chief Financial Officer Rob Aitken, Magister’s stake could reach roughly 60%. If minorities subscribe, then Magister’s holding will be somewhere in “mid range,” Reuters reported.
“Magister has vast experience in sectors which complement THL’s strategic focus areas. Magister is expected to add value (to Tongaat) through its logistics, agricultural management and commercial experience,” Tongaat said in a JSE filing on Wednesday.
Hamish Rudland and his brother Simon formed Pioneer Transport in 1995, growing their business into Pioneer Corporation Africa through the acquisitions of other leading transport businesses, including Unifreight – owners of Swift transport – Bulwark, and Clan.
In 2015, Simon Rudland launched the Rudland & George cigarette brand.
The Rudlands have been active investors on the Zimbabwe Stock Exchange, holding significant stakes in assets such as Zimre, though his investment vehicle Day River Corporation, and in agriculture company CFI.-newswire
