HARARE- Regional sugar giant Tongaat Hulett, parent to Hippo Valley Estates has said it will will delist its shares from the London Stock Exchange in a bid to cut costs and streamline its shareholding structure.
The move comes amid low trading volumes in the stock on the LSE, the company said on Friday. The company recently applied for voluntary suspension of trading on the JSE and the LSE after auditors noted irregularities in previous financials.
The company earlier stated that it would restate financial information after a formal review which revealed certain accounting practices needed to be re-examined.
“It has determined that the volume of trade over the past few years, together with the cost of maintaining the secondary listing, does not sufficiently warrant a presence on the LSE,” the company said in a statement.
Tongaat said it would maintain its primary listing on the Johannesburg Stock Exchange. Shareholders as of Sept. 4 on the UK share register, a fraction of the total, will be transferred onto the South African share register.
In June, Hippo Valley Estates announced through a cautionary statement that it was critically reassessing its financials for the full year to March 2019, a development which resulted in the results’ delayed release.
The sugar operations in Zimbabwe consist of Triangle and a 50,3 percent stake in Hippo Valley Estates, representing a combined installed sugar milling capacity of more than 640 000 tons.
At the beginning of the 2017/18 season, the Zimbabwe operations were supplied by 45 245 hectares of sugarcane land (own-estates and private farmers) with a potential to produce more than four million tons of sugarcane.
The total refined sugar 60 000 tons and the Triangle ethanol plant has an installed capacity of 41 million litres over a 48-week production season.
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