Nampak announced its plan to sell its 51.43% stake in Nampak Zimbabwe to TSL, a company listed on the Zimbabwe Stock Exchange, for $25 million (approximately R438 million). 

This move aligns with Nampak’s strategy to divest certain assets, helping to reduce its overall debt and mitigate exposure to the economic challenges in Zimbabwe.

The funds from this sale are earmarked for further debt repayment. However, the transaction is contingent on specific conditions, including shareholder approval from TSL and necessary regulatory clearances.

Nampak Zimbabwe, a subsidiary of the Nampak group, produces a variety of packaging materials, including paper, plastic, and metal products. As of the end of September, the book value of Nampak’s 51.43% stake in Nampak Zimbabwe was R292.5 million, while the attributable post-tax profit for the period was R84.8 million.

According to the Companies and Other Business Entities Act and the Zimbabwe Stock Exchange rules, TSL must extend a mandatory offer to acquire the remaining shares in Nampak Zimbabwe after the sale is finalized. TSL has stated that it has the necessary resources to meet this requirement within the regulated timeframe, either through cash or a share swap. This mandatory offer will be carried out solely by TSL, without involvement from Nampak.