TONGAAT: 2,312 -3 (-0.13%)
South Africa's Tongaat shares fall to lowest since 1993
(Adds detail, updates shares, gives trader quote)
JOHANNESBURG, March 11 (Reuters) - Shares in South Africa's
Tongaat Hulett fell more than 14 percent on Monday
after its chief executive said last week that a review of past
accounting practices at the firm could affect previously
reported financial information.
The struggling sugar producer, which has operations in South
Africa, Mozambique and Zimbabwe, traded at its lowest since 1993
on Monday, falling 14.8 percent to 18.75 rand by 0722 GMT.
Tongaat said on Friday that a strategic review being carried
out by newly appointed CEO Gavin Hudson had revealed past
accounting practices that might require remedial action.
The company has appointed PricewaterhouseCoopers (PwC) to
review "certain practices" in response to the findings, it
"The minute you hear things like that the Steinhoff saga
comes to mind and people get very jittery," said Ryan Woods,
market trader at Independent Securities.
More than 90 percent of Steinhoff's market value
was lost after the multinational retailer revealed a more than
$12 billion hole in its accounts in December 2017.
Tongaat's shares have been on a downward trajectory since it
warned in February that it expected a full-year loss due to a
sugar tax in South Africa and higher sugar imports.
The firm is currently reviewing its strategic and financial
position to stabilise debt levels and stabilise the business.
The firm, whose net debt stood at 7.754 billion rand
($539.54 million) as of Sept. 30, 2018, said last month it had
entered discussions with its lenders.
($1 = 14.3715 rand)
(Reporting by Tanisha Heiberg
Editing by Edmund Blair and Jan Harvey)
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