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South Africa’s heavily indebted sugar producer Tongaat Hulett has entered negotiations on the potential sale of Tongaat Hulett Starch, it said yesterday, without providing details on the talks.

The agriculture and agri-processing company is seeking to cut debts through selling assets, cutting jobs, raising equity and other measures aimed at boosting cash flow.

Tongaat said in January it had already met its first debt reduction milestone of R500 million as defined in its refinancing agreements with funders and assets disposal assessments were at an advanced stage.

At 09:38, shares in Tongaat, which were voluntarily suspended from trade in June until earlier this month as it prepared to restate its financial results, were up 3,6 percent at R4,02.

Tongaat Hulett Starch is Africa‘s largest producer of starch, glucose and related products, according to Tongaat’s website. Its five mills make ingredients for alcoholic drinks, baking, jams, canned food and other products. — Reuters.