DURBAN – Tongaat Hulett and Barloworld subsidiary, the KLL Group, continue to be in deadlock over the sale of the starch business.
This comes after the KLL Group notified Tongaat last month that it believed that the impact of Covid-19 global pandemic was likely to cause the earnings before interest, tax, depreciation and amortisation of starch business for the year to end March 2021 to be 82.5 percent lower or less.
The KLL Group was of the view that a material adverse change (MAC) as defined in the starch disposal agreement had occurred.
However, Tongaat believes that such a change had not occurred and the companies have agreed to refer the matter to an independent third party.
“The company is engaging with KLL Group in order to move matters forward and is committed to the process of resolving the dispute,” the group said. The group said the matter was being referred for determination by an independent third party.
“As of the date of this announcement, the company and KLL Group have been unable to reach an agreement on the identity of the independent third party. The process to determine the identity of the independent third party is ongoing,” the group said.
BUSINESS REPORT ONLINE