Published: 9 hours ago

South African packaging giant Nampak Limited has reached a sale and purchase agreement to divest its 51,43% stake in Nampak Zimbabwe to TSL Limited, subject to regulatory and other suspensive conditions.

The agreement follows Nampak's October 2024 announcement of its plan to exit the Zimbabwean market, part of a broader 2023 asset disposal strategy aimed at raising ZAR2,6 billion (US$148,09 million) over 18 months to reduce debt.

According to Nampak Zimbabwe, shareholders and the public are advised to exercise caution when trading in the company's securities until the disposal is fully implemented.

The Zimbabwean subsidiary returned to profitability in the half-year to March 31, 2025, posting ZAR68 million (US$3,88 million) in profit, compared to a loss of ZAR87,1 million (US$4,97 million) in the same period last year. Management noted that the US$25 million sale price is expected to exceed the subsidiary's book value.

Under the terms of the agreement, US$23 million of the purchase price will be paid once certain conditions are met, including funding requirements, shareholder approval, and regulatory clearance by July 31, 2025. The remaining US$2 million will be paid in two equal tranches over the first and second anniversaries of the initial payment.

As of March 2025, Nampak Zimbabwe's assets were valued at ZAR600,1 million (US$34,28 million). The sale marks a significant step in Nampak Limited's turnaround strategy and its continued focus on debt reduction.
- newsday

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