Vision Investments subsidiary Vision Sugar South Africa has reaffirmed its commitment to the acquisition of embattled sugar producer Tongaat Hulett despite various litigation efforts having been made by a rival bidder.

Vision says it remains fully focused on the successful implementation of the Tongaat business rescue plan (BRP), which is intended to fully restore the sugar producer’s operations, protect livelihoods and rebuild the business for long-term sustainability.

The acquisition is well under way, supported by “new leadership, fresh capital and operational discipline”, Vision states, adding that performances are already improving across Tongaat’s sites.

For Vision, Tongaat’s recovery is not just one of commercial value, but vital economic and social value too.

Vision confirms that it plans to appeal the latest application brought by RGS Group Holdings that claims Tongaat’s assets were used to fund or secure the acquisition.

The Durban High Court on July 4 ruled Vision must provide certain documents and disclosure relating to the acquisition of the former lender group of Tongaat’s claims and security.

The ruling is limited to disclosure and does not affect the implementation of the BRP nor the integrity of the acquisition itself, Vision clarifies.

The latest application by RGS regarding the business rescue process marks the fourth litigation brought against Vision, with a prior application to stop the BRP having been dismissed by the High Court in KwaZulu-Natal.

RGS also submitted its own BRP for Tongaat as part of its takeover bid for the company’s ownership, but withdrew this plan shortly before the creditor vote following reports alleging that RGS had submitted fraudulent proof of funding.

Vision says its commitment to see Tongaat’s recovery through remains unwavering. It will ultimately buy Tongaat’s South African assets and operations by way of a set-off of the purchase consideration against a portion of lender group claims. Vision is buying Tongaat’s R8.5-billion debt from lenders and converting most of it into equity.

Vision launched a leadership roadshow last month, led by CEO Gavin Dalgleish, to engage stakeholders in South Africa, Zimbabwe, Mozambique and Botswana, in preparation of assuming full operational responsibility for Tongaat.

Tongaat entered into business rescue in October 2022 following a financial collapse triggered by high debt levels, alleged accounting fraud and executive mismanagement.