TONGAAT HULETT LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1892/000610/06
Share code: TON
ISIN ZAE000096541
(“Tongaat Hulett” or “Company”)


BOARD APPROVAL OF THE CAPITAL RESTRUCTURING PLAN, FEEDBACK ON
LIQUIDITY AND FURTHER CAUTIONARY


Shareholders are referred to the announcements released on SENS on 8 September 2022
and 28 September 2022, which contained an update on the Company’s capital restructuring
plan (“Restructuring Plan”), aimed at reducing the Company’s excess debt and achieving
longer-term sustainability.

Tongaat Hulett has to date succeeded in reducing the debt burden carried by its South African
sugar operation, property operation and corporate office (“South African operations”) from
R11.7 billion to R6.3 billion. This was achieved through the selected sale of assets and various
cost and liquidity management actions. However, delays experienced in the recapitalisation of
the Company, particularly the failed planned equity capital raise, have seen debt levels remain
well in excess of what can be serviced by the South African operations. Consequently, further
initiatives are urgently required to address the excess debt burden in the South Africa
operation of more than R6.3 billion.

Although the milling performance of the South African sugar operation is considerably better
than the previous season, the shortfall in the Company’s facilities necessary to cover the peak
working capital requirement in respect of the current milling season remains R1.5 billion. As
previously reported, the shortfall arose from the difficult commercial environment during the
last quarter of year ended March 2022, the lack of any meaningful dividend or fee income from
the African subsidiaries and higher restructuring costs. In July 2022, and despite these
setbacks, the South African lenders supported the Company with the provision of a new
borrowing base facility covering R600 million of the total working capital requirement. This
facility currently has a scheduled repayment date of 25 October 2022.

The Restructuring Plan, which has been developed and approved by the Board, seeks to
address both the Company’s excess debt and its liquidity constraints. The implementation of
the Restructuring Plan is dependent on inter alia the acceptance by various stakeholders
whose participation is required in relation to various elements. The Restructuring Plan will be
submitted to such stakeholders for their consideration imminently, and the Board will engage
with such stakeholders in relation thereto, as a matter of urgency.

The approved Restructuring Plan contemplates an extension and increase of the Company’s
commercial debt facilities, to conclude the milling season and allow time to implement the
other components of the Plan. The Company is engaged in ongoing negotiations to determine
the availability of such facilities.
In the interim, management continues to progress numerous initiatives to improve cash flows
and increase liquidity headroom.

FURTHER CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the cautionary announcement released on SENS on 19 April
2022 and subsequently renewed on 31 May 2022, 15 July 2022, 26 August 2022 and
8 September 2022.

In light of the content of this announcement and given that negotiations with various parties in
relation to the proposed recapitalisation of Tongaat Hulett remain ongoing, shareholders are
advised to continue to exercise caution when dealing in the Company’s securities until a
further announcement is made.


Tongaat
14 October 2022

Sponsor
PSG Capital