The Johannesburg Stock Exchange (JSE) has decided to delist Tongaat Hulett, bringing an end to the South African sugar producer’s 74-year history on the exchange after years of financial distress, accounting irregularities and a prolonged business rescue process.
The company’s shares are scheduled to be removed from the JSE Main Board from the commencement of business on 3 November 2026.
The decision marks another major setback for a company that was once a prominent name in South Africa’s agricultural and sugar industries, with operations and a long-standing economic footprint in KwaZulu-Natal.
The JSE announced the decision on 12 October, citing Tongaat Hulett’s prolonged suspension, continued failure to meet listing requirements and the absence of a realistic prospect of restoring compliance.
In its announcement, the exchange said it had considered “the extensive and ongoing non-compliance with the Requirements” and the company’s acknowledgement that no value was expected to accrue to shareholders.
Tongaat Hulett has not appealed the decision.
Why is Tongaat Hulett being delisted?
The company’s problems with the JSE began in July 2022, when its shares were suspended from trading after it failed to publish its annual financial results for the year ended 31 March 2022.
The suspension meant investors could no longer buy or sell the shares through the exchange.
Tongaat Hulett subsequently entered voluntary business rescue on 27 October 2022 as it struggled with severe financial difficulties.
Since then, it has failed to publish the outstanding audited financial statements and other financial information required of a listed company. The absence of reliable, auditable information has also made it difficult to establish a credible valuation for the business.
The company’s financial distress and continuing business rescue proceedings have left it unable to meet several important JSE listing obligations.
The JSE gave Tongaat Hulett an opportunity to explain why its listing should not be removed. However, the company acknowledged that it remained non-compliant and that the possible outcomes of the rescue process would not provide a realistic path to restoring its listing obligations.
The exchange concluded that keeping the company listed would create an expectation of a possible return to trading or residual shareholder value that was unlikely to materialise.
What does the delisting mean for shareholders?
The delisting does not automatically cancel the shares held by existing investors. However, it significantly changes what shareholders can do with them.
After the delisting takes effect, shareholders will continue to hold shares in an unlisted company. Their holdings will be administered by Computershare Investor Services, the company’s transfer agent.
The shares will no longer trade on the JSE’s electronic trading platform, meaning investors will lose the ordinary exchange mechanism for buying and selling their holdings.
The company has also warned shareholders not to expect a cash payment or buyout offer as a result of the delisting.
According to Tongaat Hulett’s announcement, the adopted business rescue plan provides for the disposal of its assets and businesses. Once the process is completed, no value is expected to accrue to shareholders, and investors should not expect future distributions on their shares.
The last day to trade off-market is scheduled for 27 October 2026, with the record date set for 30 October. The shares are due to be removed from the JSE trading system on 3 November.
The distinction is important: delisting is the removal of a company’s shares from the exchange, while the business rescue process determines what happens to the financially distressed company and its assets.
How did Tongaat Hulett fall from grace?
Tongaat Hulett’s roots stretch back to the 19th century, and the company became one of the country’s best-known sugar producers. Its shares were listed on the JSE in 1952, and the group later developed interests in sugar production, agriculture, animal feed and property development.
For decades, it was a significant name in South African business. Its collapse into financial distress was therefore a major blow to investors and the communities and workers connected to its operations.
The crisis became public in 2019, when accounting irregularities were uncovered, raising serious questions about the reliability of the company’s previously reported financial results.
A forensic investigation by PwC identified accounting practices that led to substantial adjustments to the company’s financial position. The revelations severely undermined confidence in its financial reporting and triggered a broader effort to investigate the circumstances surrounding the losses.
The company later pursued legal action against former executives, including former chief executive Peter Staude, former chief financial officer Murray Munro and former finance executive Sean Slabbert, seeking to recover money linked to the alleged misconduct.
In 2022, the former executives were charged with fraud relating to approximately R3.5 billion. The allegations formed part of a wider investigation into the company’s financial reporting and property transactions. The charges must be distinguished from findings of guilt unless and until established in court.
The scandal damaged the company’s reputation, weakened investor confidence and contributed to the financial crisis that ultimately led to its JSE suspension and business rescue.
