Hippo Valley Estates Limited says its Zimbabwean operations remain stable and unaffected following an application for the provisional liquidation of its South African parent company, Tongaat Hulett Limited.
In a media statement issued on Thursday, Hippo Valley said the joint business rescue practitioners of Tongaat Hulett Limited had approached the High Court of South Africa seeking an order to discontinue business rescue proceedings and place the company’s South African operations under provisional liquidation.
The move follows the lapse of sale agreements with Vision Sugar, which had been central to the group’s restructuring plan.
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The company said the developments in South Africa do not involve its Zimbabwean operations, which operate as independent legal entities with separate management, finances and operational structures.
“Hippo Valley Estates Ltd remains financially robust, operationally sound, and fully committed to all contractual obligations,” the Zimbabwe Stock Exchange-listed company said. It added that production continues as normal and reaffirmed its commitment to Zimbabwe’s agricultural sector and surrounding communities.
Tongaat Hulett’s Zimbabwean sugar operations, which include Hippo Valley and Triangle estates in the Lowveld, are significant contributors to the country’s sugar output and provide employment to thousands of workers and outgrowers.
The clarification comes amid heightened interest from stakeholders in Zimbabwe following reports of the parent company’s financial challenges in South Africa.
Hippo Valley said it would provide further information should the need arise.
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