Carta's sources say that Lusitania has offered Tongaat Hulett 3.5 billion rands (about 218 million US dollars) for the Mozambican assets which include majority holdings in the Xinavane [pictured] and Mafambisse sugar plantations and mills. [Photo: In file CoM]
The American company Lusitania Investment Capital is negotiating with the South African sugar producer, Tongaat Hulett, to acquire its assets in Mozambique, reports Monday’s issue of the independent newssheet “Carta de Mocambique”.
The paper’s sources say that Lusitania has offered Tongaat Hulett 3.5 billion rands (about 218 million US dollars) for the Mozambican assets which include majority holdings in the Xinavane and Mafambisse sugar plantations and mills.
Tongaat Hulett has an accumulated debt of 6.8 billion rands, and it has postponed the release of its results for the financial year that ended in March to an indeterminate future date. The sale of the Mozambican assets might cut Tongaat Hulett’s debt by half.
Tongaat Hulett has not yet reacted formally to the Lusitania bid. One of the company’s directors is cited as saying “The creditors are continuing to support Tongaat Hulett, and the company is currently working with them to seek liquidity, which will allow more time to advance with a comprehensive solution for restructuring”.
In email correspondence with “Carta de Moçambique”, Lusitania said “the company is involved in various operations across the African continent with the goal of developing operations in the sustainable growth of foodstuffs, agro-business and agro-industry dealing with food security”. In that context, Lusitania wanted to invest in Mozambique.