HARARE, Jun. 19 (NewsDay Live) — South Africa’s state-owned Industrial Development Corporation (IDC) is set to gain exposure to Zimbabwe’s sugar industry after agreeing to become a shareholder in Vision Group’s regional operations, including Triangle Limited and Hippo Valley Estates Limited, as part of Tongaat Hulett’s business rescue plan.
The agreement marks a major breakthrough in Tongaat’s restructuring efforts and revives plans to transfer the group’s Zimbabwean sugar interests to South Africa-based Vision, placing Triangle and Hippo at the centre of a deal that could reshape the local sugar industry.
The development follows the signing of a binding agreement between Tongaat, Vision and the IDC, paving the way for the withdrawal of liquidation proceedings and renewed implementation of the rescue plan.
Tongaat operates in Zimbabwe through its wholly owned subsidiary, Triangle, which holds a 50.32% stake in Hippo Valley Estates. The outcome of the transaction is therefore significant for an industry that supports thousands of jobs and sugarcane growers.
The agreement also provides additional funding to keep Tongaat operating while the transaction is completed.
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Vision had initially agreed to acquire Tongaat through a US$330 million debt-to-asset transaction.
“The agreement will see the IDC become a significant shareholder in Vision operating companies across South Africa, Zimbabwe, Mozambique and Botswana, while extending post-commencement finance support to the end of September 2026,” the IDC, Tongaat’s business rescue practitioners and Vision said in a joint statement.
“It also provides a basis for preserving an estimated 250,000 jobs across the sugar industry value chain and for concluding the steps required for Tongaat Hulett to exit business rescue.”
The agreement follows months of uncertainty after a liquidation application was filed in the Durban High Court.
“The parties have chosen instead to work together to keep Tongaat Hulett operating and to protect the value it holds for employees, growers, suppliers, lenders and the communities that depend on it,” the statement said.
“On the strength of this historic agreement, the business rescue practitioners will take the steps necessary to withdraw the liquidation application.”
Tongaat later confirmed the withdrawal.
“Notice is hereby given to all affected persons, as defined in section 128(1)(a) of the Companies Act 71 of 2008, that on June 17, 2026, the Durban High Court granted the joint business rescue practitioners leave to withdraw the provisional liquidation application previously instituted in respect of Tongaat Hulett Limited,” the company said.
Tongaat said the withdrawal followed the fulfilment of two key conditions previously set by the business rescue practitioners.
“Namely, the securing of binding and unconditional funding commitments sufficient to support the company’s ongoing operations, and the conclusion of a concrete and implementable transaction capable of achieving the objectives of the adopted business rescue plan,” the company said.
“The business rescue practitioners are pleased to advise that significant progress has been achieved in respect of both requirements.”
The deal clears a major hurdle in Tongaat’s restructuring process and secures continued operations across its regional sugar assets, including its Zimbabwean businesses.
