Kagera Sugar Limited has been selected as the preferred bidder to acquire Tongaat Hulett Limited's sugar division, encompassing operations in South Africa, Zimbabwe, Mozambique, and Botswana, aimed at revitalizing the business and enhancing regional efficiencies.

Information on the Target

Tongaat Hulett Limited (THL) has initiated a business rescue process, leading to the selection of a preferred strategic equity partner for the acquisition of its complete sugar division. This acquisition encompasses not only THL's sugar operations in South Africa but also its investments in Zimbabwe, Mozambique, and Botswana, collectively referred to as Tongaat Sugar Assets. The selected partner, Kagera Sugar Limited, is a prominent sugar manufacturing company based in Tanzania and is known for its expansive operations across multiple African countries.

Kagera Sugar Limited is part of a larger conglomerate that ranks among the largest sugar producers in Tanzania, with additional sugar assets located in the Democratic Republic of Congo and the Middle East. This acquisition aligns with Kagera’s growth strategy and is expected to enhance operational efficiencies across the combined assets.

Industry Overview in Target’s Specific Country

The sugar industry in South Africa has faced significant challenges in recent years, including economic pressures, fluctuating global sugar prices, and increased competition from international marke