Tongaat Hulett’s recently appointed CEO Gavin Dalgleish is set to steer the group through the final phase of the company’s business rescue plan, before the assets are transferred to the acquiring party, Vision Consortium.
Dalgleish was appointed by the business rescue practitioners, in line with the Companies Act, to oversee the complex transaction and ensure continuity and stability as the group transitions into its next phase.
Stemming from his experience in stabilising and turning around sugar businesses, Dalgleish, who is also former CEO of Illovo Sugar, was appointed as the CEO of Vision in April.
At Tongaat, he is expected to oversee the transition of the management team and operations once the asset sale to Vision is finalised.
Dalgleish’s role will include co-ordinating budgeting and planning and maintaining focus on business performance during the transition.
According to Tongaat, the business rescue plan was progressing smoothly, following Robert Gumede’s Vision Consortium’s R2bn settlement of outstanding obligations to the lender group in May. The finalisation of the asset transfer transaction was expected shortly.
The leadership transition, coupled with the steady progress of the business rescue plan, strengthens Tongaat’s efforts to secure its long-term survival, providing a crucial lifeline as the company moves forward.
“The process is not only about restructuring a business, but also about preserving thousands of jobs, sustaining the livelihoods of farming communities, and protecting a company that remains a vital contributor to regional economies across Southern Africa,” Tongaat said.
Tongaat entered business rescue in 2022 after a PwC investigation uncovered a major accounting fraud scandal. The probe revealed that top executives had inflated the company’s profit, resulting in write-downs and leaving the company unable to meet its debt obligations. As a result, creditors called in the debt, forcing Tongaat into business rescue.
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