SENS

27-07-2007

Tongaat Hulett: Trading statement


(Tongaat Hulett Limited
(formerly The Tongaat-Hulett Group Limited)
(Registration number 1892/000610/06)
Share code: TON
ISIN ZAE000096541

TONGAAT HULETT: TRADING STATEMENT

The Tongaat-Hulett Group has unbundled its shareholding in Hulamin to its shareholders following the listing of Hulamin on the JSE. Two focussed, separately listed entities have been established in the form of Tongaat Hulett and Hulamin. Tongaat Hulett is an agri-processing business, which includes integrated components of land management, property development and agriculture. The corporate transactions approved by shareholders and currently being implemented in Tongaat Hulett include 25% BEE equity participation and a share buy-back.

Profit from Tongaat Hulett operations in the first six months of the year is expected to be approximately R308 million (2006: R307 million). This includes profit from the sugar operations of R167 million (2006: R159 million), starch of R37 million (2006: R43 million), land and property development of R127 million (2006: R117 million) and centrally accounted costs of R23 million (2006: R20 million). No dividends from Triangle in Zimbabwe were brought to account in the first half of 2007 (2006: R8 million).

The corporate transactions being undertaken by Tongaat Hulett include 25% BEE equity participation and a return of capital to shareholders by way of a share buy-back. The 18% strategic partner, cane and infrastructure BEE equity participation cost was measured and recognised at the grant date in June 2007, resulting in a once-off IFRS2 cost of R320 million being charged to the income statement. Advisory and other transaction related costs of approximately R34 million have been brought to account. The share buy-back is being implemented in July 2007 and will be accounted for, including the STC, in the second half of 2007. The IFRS2 costs relating to the 7% BEE transaction, in respect of black employees, will be amortised over 5 years, commencing in the second half of 2007.

Pursuant to the listing and unbundling of Hulamin at the end of June 2007, Tongaat Hulett’s 50% share in Hulamin was fair valued through the income statement by R3,348 billion and thereafter unbundled as a distribution in specie.

The financial impact of these corporate transactions was included in the circular to shareholders dated 18 May 2007.

Taking all of the aforementioned into account, after interest and tax, Tongaat Hulett’s total net profit for the six months to 30 June 2007 is expected to be approximately R3,209 billion (2006: R320 million), with earnings per share being approximately 2994 cents per share (2006: 302 cents per share). Headline earnings, which do not include the Hulamin fair valuation and do include the transaction costs and BEE IFRS2 costs, are expected to reflect a headline loss of approximately R155 million (2006: R297 million headline profit) for the half-year, with headline earnings per share being a loss of 145 cents per share (2006: 283 cents per share headline profit).

The results for the half-year ended 30 June 2007 are scheduled for release on Monday, 30 July 2007.

This trading statement is issued in compliance with the JSE Listings Requirements. The above information has not been reviewed and reported on by the auditors.

Tongaat
27 July 2007

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INVESTEC BANK LIMITED