JSE-listed Tongaat Hulett will sell its starch business to Barloworld for an enterprise value of R5.35-billion.

Tongaat will use the proceeds to reduce its debt.

“This was a compelling offer for our starch business. Our number one priority is to ensure the long-term sustainability of Tongaat and a key element of this is paying down our debt as quickly as possible. Our agreement is to reduce debt by R8.1-billion by March 2021 and we have already met and exceeded the first debt repayment milestone agreed with our lenders,” Tongaat CE Gavin Hudson said.