Tongaat Hulett shares plunge as trading resumes

Shares in sugar producer Tongaat Hulett [JSE:TON] plunged by over 60% on Monday morning as it resumed trading on the JSE after a 7-month suspension. 

The group had asked the stock exchange to suspend its shares in June 2019 after it uncovered accounting irregularities that resulted in inflated assets and profits. The probe lead to the restatement of the group's September 2018 results. 

Its shares were trading at R4.99 a share at 10:20 on Monday, down 62%. 

On Friday, Tongaat reported that gross revenue for the six months to end September 2019 had fallen by 1.5% to R8.085 billion. The group's net loss, meanwhile, decreased by 19% to R318m, from R392m in 2018.

It also announced last week that it had committed to reducing its South African debt by at least R8.1bn by March 2021, which it would do via a combination of cost savings, asset sales and an equity capital raise. 

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