Tongaat investors consider legal bid to stop Zim family from taking control

Small shareholders in the sugar giant Tongaat Hulett are considering legal action after they lost a vote which will put the controversial Rudland family in the driver's seat of the sugar producer.

On Tuesday, a majority of shareholders approved a massive rights issue. The rights issue will see the company issue new shares worth up to R4 billion. The company's total market capitalisation, currently, is only R703 million.

Some R2 billion of the rights issue is underwritten by a Mauritius-based firm called Magister Investments.