TONGAAT: 1,321 0 (0.00%)
South African sugar producer Tongaat suspends shares due to results delay
(Adds detail, background)
JOHANNESBURG, June 10 (Reuters) - Shares in South African
sugar producer Tongaat Hulett were suspended from trade
on the Johannesburg and London stock exchanges on Monday at the
company's request as it prepares to restate its financial
Tongaat's shares have fallen 42% since it first said in
April that it would restate its 2018 financial results.
Last month it also delayed the release of its 2019 financial
results, for the year ended March 2019, to October from May.
"Owing to the Board's concern that there is insufficient
information in the market to enable investors to make informed
decisions, the Board has voluntarily approached the JSE with a
request for a suspension of the listing of the Company’s
securities," Tongaat said in a statement on Monday.
It reiterated that it aimed to publish its financial results
for the year ended March 2019 by the end of October and said its
shares would resume trade then, or earlier if sufficiently
reliable information can be released.
Its shares were down 5.30% at 13.21 rand in Johannesburg
when they were suspended just after 1300 GMT, in the middle of
the trading day.
The company said it was continuing with its strategic review
and turnaround strategy that would include cost reductions, the
sale of possible assets and restructuring of operations.
Tongaat, which has operations in South Africa, Mozambique
and Zimbabwe, said last month that its 2018 results could face a
potential hit of up to 4.5 billion rand ($306 million) following
a review of its accounting practices.
Tongaat, which has a primary listing on the Johannesburg
stock exchange and a secondary listing on the London stock
Exchange, had said in April that it would restate prior
financial information after a formal review revealed certain
accounting practices that needed to be re-examined.
(Reporting by Tanisha Heiberg; editing by David Evans and Susan
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