DISPOSAL OF ILLOVO'S 80,25% INTEREST IN MON TRESOR AND MON DESERT

ILLOVO SUGAR LIMITED
  (Incorporated in the Republic of South Africa)
  (Registration number 1906/000622/06)
  ("Illovo")

Announcement regarding the disposal of Illovo's 80,25% interest in Mon Tresor
and Mon Desert Limited (Mauritius)
1. Introduction

Further to the cautionary announcements dated 5 February 2001 and 14 February
2001, ING Barings is authorised to announce that all the conditions precedent,
relating to the disposal of Illovo's 80,25% interest in Mon Tresor and Mon
Desert Limited (Mauritius) to BBHM Holdings Limited advised by Brait

International Limited and PricewaterhouseCoopers Mauritius ("the transaction"),
have been met and the transaction was completed on 6 April 2001. The total cash
consideration of approximately R472 million will be settled as follows:
 - R229 million in cash; and

 - Mauritian Rupees 872 million (approximately R243 million) in cash.
2. Rationale for the transaction

The transaction involves Illovo's disposal of a relatively high cost sugar
producer and its non-core hotel assets. This is consistent with Illovo's
strategic intent of focusing on higher margin sugar operations and being among
the most efficient and lowest cost producers in the world. It also enables
Illovo to reduce its borrowings and to pursue further core-business
opportunities.
3. Financial effects of the transaction

The table below sets out the financial effects of the transaction for the six
months ended 30 September 2000, on the basis that the transaction was effective
1 April 2000:

For the six months ended        Before the            After the   Percentage
30 September 2000              transaction Adjustments(3) transaction change
Income attributable to ordinary

 shareholders (R'm)             114,5       4,6            119,1       4,0%
Net tangible asset value (R'm)  1 271,8     (18,6)         1 253,2     (1,5)%
Earnings per share (cents)(1)   34,7        1,4            36,1        4,0%
Headline earnings

 per share (cents)(1)           31,5        1,4            32,9        4,4%
Net tangible asset value

 per share (cents)(2)           385,4       (5,6)          379,8      (1,5)%
Notes:

1. Based on the weighted average number of shares in issue of 329 970 890 for
the six-month period ended 30 September 2000.

2. Based on the number of issued shares of 329 979 701 at 30 September 2000.
Net tangible asset value is equivalent to net asset value, there being no
goodwill on record for the period ended 30 September 2000.

3. Assumes that the transaction was effective 1 April 2000 and assumes an
average interest rate on the net proceeds of 11,6% and a tax rate of 30%.
4. Documentation

In accordance with the JSE Securities Exchange South Africa Listings

Requirements, a circular to shareholders setting out full details of the
transaction will be posted to shareholders in due course.
5. Further cautionary announcement

Illovo shareholders are reminded that Illovo is under a cautionary

announcement, dated 23 March 2001, in terms of an unrelated transaction in
respect of a mandatory offer by Illovo to the minority shareholders of Zambia
Sugar Plc and that they should continue to exercise caution when dealing in
their Illovo shares until the results of the mandatory offer are published on
or about 21 May 2001.
Mount Edgecombe
9 April 2001
Financial adviser and sponsor to Illovo
  Ing barings
Corporate advisers to BBHM Holdings Limited
  Brait
  PriceWaterhouseCoopers