| Wed 20 Jun 2007, 15:33 | | TNT - Tongaat-Hulett - Launch of new name and sing |
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TNT
THGL
TNT - Tongaat-Hulett - Launch of new name and single entity brand and BEE Equity
Partnership records high rating on scorecard
The Tongaat-Hulett Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1892/000610/06)
(Share code: TNT)
(ISIN: ZAE000007449)
("THG")
Media Release
LAUNCH OF NEW NAME AND SINGLE ENTITY BRAND and BEE EQUITY PARTNERSHIP RECORDS
HIGH RATING ON SCORECARD
The Tongaat-Hulett Group`s transformation from a conglomerate to an integrated
agri-processing company culminated today with Tongaat Hulett launching its new
logo and name. The launch coincided with a dinner to celebrate Tongaat Hulett`s
partnership with Ayavuna Investments and Sangena Holdings, its broad based BEE
anchor partners.
The Tongaat-Hulett Group is completing a corporate restructuring and is to be
known as Tongaat Hulett as it moves forward. Tongaat Hulett is positioned as an
agri-processing business which includes the integrated components of land
management, property development and agriculture. Hulamin (Hulett Aluminium) is
being listed on the JSE and unbundled from The Tongaat-Hulett Group. Two
focussed, separately listed entities are thus being created. The corporate
transactions include the simultaneous introduction of broad based BEE equity
participation in both Hulamin and Tongaat Hulett.
CEO Peter Staude says, "Tongaat Hulett is now positioned to move forward as one
company with one entity brand. This will result in a number of changes
throughout Southern Africa. This includes African Products being renamed Tongaat
Hulett Starch and Moreland Developments becoming known as Tongaat Hulett
Developments."
Tongaat Hulett, through its sugar and starch operations in Southern Africa,
produces a range of refined carbohydrate products from sugar cane and maize. It
has considerable expertise in downstream agricultural products, bio-fuel
production and electricity co-generation. Tongaat Hulett is increasing its
involvement in agriculture, in a world where agriculture in Africa will grow as
a result of more equitable trade regimes and the emerging renewable energy
landscape. Once the current expansion of its Mozambique operations is completed
21 411 hectares of cane will be farmed by Tongaat Hulett in that country alone.
The new logo reflects an organisation that is dynamic, growing, results
orientated, indigenous, innovative and sustainable and captures the essence of
Tongaat Hulett going forward while still acknowledging the heritage of more than
150 years. This is illustrated by the retention of the name Tongaat Hulett and
the colour green, which represents growth, innovation and change. The
introduction of three new colours indicates a belief in the future of the
organisation - red which reflects energy, passion, strength and dynamism, orange
which embodies success, enthusiasm and prosperity and brown which symbolises
stability, purpose and security.
Staude stated, "Tongaat Hulett has always viewed broad based BEE as essential
and as an opportunity to become more closely aligned with the communities in
which it operates. We are pleased with our progress in the areas of employment
equity, preferential procurement, enterprise development, corporate social
responsibility and training and development. The achievement of a 25% BEE equity
participation fulfils an essential component of the BEE Codes of Good Practice
and complements the existing components of the scorecard already achieved by
Tongaat Hulett. The National Empowerment Rating Agency (NERA) has indicated that
Tongaat Hulett will achieve a score of 22 points (including 2 bonus points) out
of 20 for the ownership element of the scorecard."
The broad based BEE transactions involve the collective 25% equity participation
in Tongaat Hulett by:
Ayavuna Women`s Investments, as an anchor partner, combining with the Mphakathi
Trust, which benefits the communities surrounding the Tongaat Hulett property
developments;
Sangena Investments, as an anchor partner, combining with the Masithuthukisane
Trust, which benefits the small scale cane grower communities surrounding
Tongaat Hulett`s four South African sugar mills; and
All South African senior black management and all South African employees up to
middle management.
Staude says, "We are delighted to have concluded these BEE equity participation
agreements and have already commenced a process to ensure their successful
implementation."
Bahle Sibisi, head of Sangena, says "This transaction represents a significant
milestone for Sangena and its partners. For Sangena as an investment company,
Tongaat Hulett represents an excellent investment proposition, offering great
prospects for Sangena and its partners in the cane growing communities. It also
provides Sangena and the cane growing communities with an opportunity to be
involved in enhancing value in the sugar milling operations, and will contribute
towards the development of the affected communities in the region."
Hixonia Nyasulu, head of Ayavuna, says, "This deal speaks to Ayavuna`s passion
for and vast experience in community development, tourism and infrastructure
development. We are delighted to be in partnership with a company that shares
that passion."
Peter Staude concludes, "We know that we have broad based BEE partners who
understand and fit well into our business. Our BEE partners are extremely
relevant to the operations and their future success. The Tongaat Hulett board
together with its BEE partners is of the view that its current investments in
operations combined with the positive global environment will deliver attractive
earnings growth. Through its current and future investments, the company is well
positioned to capitalise on opportunities within agri-processing, agriculture,
integrated land management and property development."
20 June 2007
Tongaat
Sponsor
INVESTEC BANK LIMITED
Date: 20/06/2007 15:33:01 Produced by the JSE SENS Department.
