Mon, 23 Sep 2019

Tongaat shares suspended to 'protect investors'

News24
11 Jun 2019, 00:43 GMT+10

The board of Tongaat Hulett has requested the suspension of its listing on the Johannesburg Stock Exchange amid an investigation.

According to a shareholder notice issued on Monday afternoon, the company's listing on both the JSE and the London Stock Exchange has been suspended.

This decision by the board comes following a delay in the publication of the company's financial results. Shareholders were advised on May 31, 2019 that the financial results for March 31, 2018 cannot be relied upon and will be restated. This has had implications for the reliance of the interim results for the period ended September 30, 2018 and the full 12 months ended March 31, 2019.

"Owing to the board's concern that there is insufficient information in the market to enable investors to make informed decisions, the board has voluntarily approached the JSE with a request for a suspension of the listing of the company's securities.

"The JSE has granted this request, and accordingly the listing of the Company's securities on the JSE has been suspended. The listing of the securities on the London Stock Exchange, on which the company has a secondary listing, has also been suspended," the notice read.

Steinhoff, Tongaat woes raise auditor scrutiny

The board intends to publish audited financial statements for the year ended March 31, 2019 by the end of October 2019, the notice read. The board will reinstate the listings at a appoint in time, or earlier, when "sufficiently reliable information" can be released.

Protect investors

Hulett's board has said the move is intended to "protect investors" as there is "insufficient reliable financial information" in the market for informed decisions to be made. This is a risk of speculative trading.

The suspension will also allow management more time to complete the restatements and for the completion of a forensic investigation, the notice read. Thee company is also embarking on a strategic review for a turnaround strategy.

"This decision has not been taken lightly. Whilst the board is conscious that some shareholders or potential investors would prefer to retain the ability to buy and sell shares, the board believes that the temporary suspension is in the best interests of shareholders as a whole," the board stated.

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