A high court has ordered the Robert Gumede-led group of investors to disclose key documents related to its acquisition of Tongaat Hulett’s lender claims and security, after a rival bidder’s legal push for transparency in the transaction.
The Durban high court ruling, handed down on Friday, orders Vision to provide proof of its R1.51bn payment made in January last year, details of the recent R2bn balance settlement, and a copy of the agreement under which it acquired the lender group’s claims and securities against Tongaat.
RGS, a Mozambican family-owned conglomerate and admitted creditor in the business rescue process, argued that the information is necessary to ensure the rescue plan is implemented transparently and in line with SA business rescue laws.
Acting judge AJ Zwane ruled in favour of RGS.
“I can find no reason why the payments to the lender group, the acquisition of the lender group claims, and the transfer of the lender group claims should be shrouded in secrecy. RGS is entitled to know that Tongaat’s assets are not encumbered as security for payment by the Vision parties to the lender group,” Zwane said.
Vision Group, which bought Tongaat’s assets through a business rescue plan approved by virtually all creditors in January 2024, said it is preparing to appeal the decision.
In a statement released on Monday, Vision Group said it had confirmed under oath that Tongaat’s assets were not used to fund or secure its acquisition of the company. The group added that this had been independently verified by the lender group and accepted by the business rescue practitioners.
“The ruling is limited to disclosure and does not affect the implementation of the business rescue plan or the integrity of the acquisition itself. Notwithstanding the limited nature of the relief, the Vision Group respectively believes that the ruling is wrong and intends to appeal it,” Vision said.
This marks the fourth legal challenge initiated by RGS in relation to the Tongaat rescue.In February, the high court dismissed its bid to block the acquisition. RGS previously submitted its own rescue plan but withdrew it before a creditor vote, after revelations of fraudulent proof of funding — a fact, Vision said, it later acknowledged in a February 2024 court filing.
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