Twelve years ago, Hulamin was valued at R600-million within the Tongaat-Hulett Group, as it was known then. On Monday, the specialised aluminium manufacturer listed as a standalone entity on the JSE with a market capitalisation of more than R8-billion.
Significantly, the listing of Hulamin’s 215,6-million shares, which had a first trade at R32 before moving up quickly to settle at about R40, also signals a new beginning for Tongaat Hulett — which has dropped the hyphen and “Group” from its name — in the agri-processing and property arenas.
Outlining Hulamin’s road to the JSE and the new-look Tongaat Hullett, Peter Staude, CEO of Tongaat Hulett, said at Hulamin’s listing function that there is a bright future for both companies in their separate fields.
Hulamin, whose two largest shareholders are Anglo American through Anglo South Africa Capital and the Industrial Development Corporation (IDC), has established a strong international name as a manufacturer of aluminium rolled and extruded products. It supplies about 1,5% of the world’s aluminium rolled product market and sees potential for expansion.
Tongaat Hulett, whose biggest shareholders are Anglo American and Stanlib, is excited by its sugar, starch, renewable energy and land-development opportunities.
“After we had sold 50% of Hulamin to Anglo and the IDC, it embarked on a big debt-funded expansion that was underwritten by the major shareholders,” explained Staude, who played a critical role in guiding Hulamin towards its listing and in ensuring that Tongaat Hulett has a strong remaining business model going forward.
“Both companies are now completely separate and can focus fully on their own individual operations,” he said, stressing that Tongaat Hulett has not retained any shares in its previous subsidiary.
While Hulamin focuses on building its international aluminium products business, Staude stressed that Tongaat Hulett will also be on the expansion trail.
“We are spending R1,3-billion in expanding our sugar interests in Mozambique and we have plans for our other business units,” he said.
Tongaat Hulett, Africa’s second-largest sugar producer behind Illovo Sugar, is South Africa’s second-largest buyer of maize and is taking a keen interest in downstream agricultural product development and opportunities in renewable energy.
It is also a major land developer, especially on the KwaZulu-Natal North Coast where it has developed major business and residential areas mainly around Umhlanga. — I-Net Bridge