• Tongaat has hired PwC to assist with reviewing the issue and said it doesn’t have enough information to provide more details yet.

Key Insights

• It’s been a tumultuous few weeks for Tongaat. The shares plummeted 20 percent on Feb. 22 after the company warned that it would post a full-year loss and planned to hold discussions with lenders.
• The latest issues were identified as part of a wide-ranging strategic and financial review of the company initiated by new Chief Executive Officer Gavin Hudson. It’s working on a turnaround strategy, but said on Friday that it’s still at an early stage.
• Tongaat has told staff to preserve all information, including data, documents and emails, and cooperate fully with the PwC team, South Africa’s Business Day newspaper said Monday.

Market Reaction

• Tongaat dropped as much as 18 percent on Monday, following a 28 percent decline on Friday. The stock is down 65 percent this year, valuing the company at 2.4 billion rand ($167 million).