Lusitania Investment Capital LLC, a company based in the United States of America, has been negotiating with sugar producer Tongaat Hulett, listed on the Johannesburg Stock Exchange since January of this year, about a possible acquisition of this group's operations in Mozambique.

Lusitania Investment Capital has offered Tongaat Hulett up to R3.5 Billion (the equivalent of US$220 million) for the transaction of full shares in the group's sugar operations in Mozambique.

The figure includes Tongaat Hulett's total holdings in the agricultural and industrial operations in Xinavane and Mafambisse.

With an accumulated debt pile of R6.8 billion, the planned recapitalization with a R5 billion injection via a rights issue to reduce debt was dealt a major blow following a ruling by South Africa's Takeover Regulation Panel (TRP), which removed a previously granted exemption for the company from the obligation to make a mandatory offer to its shareholders.

Recently, Tongaat Hulett postponed the release of its annual results for the fiscal year ending March 2022 to an unknown date.

The sale of Mozambique's assets may be the solution for the settlement of almost half of the group's debt.

Contacted for comment, Lusitania replied by email that "the company is involved in various operations throughout the African continent with the aim of developing sustainable growth operations in food, agribusiness and agribusiness that deal with food safety" and it is in that context that it intends to invest in Mozambique. (Letter)