Nampak makes up its mind to sell Zimbabwe unit to TSL for $25 million

On October 28, Nampak Limited, Africa’s leading packaging company, announced its selling plan of a 51.43 per cent stake in Nampak Zimbabwe to TSL Limited for $25 million. This move aligns with Nampak’s strategy to divest certain assets to reduce debt and mitigate economic challenges.

Image Source: Nampak

Nampak informs that the money generated from this sale will be utilised for debt repayment. However, transaction closing is subject to specific conditions, including shareholder approval from TSL and some obligatory official clearances.

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 completion of the sale transaction. TSL stated that it can meet the requirement through cash or share swaps.

Nampak Zimbabwe, a subsidiary of Nampak Group, is a leading name in Zimbabwe manufacturing aluminium beverage cans in various sizes and shapes suitable for a range of beverages, including alcoholic beverages, carbonated soft drinks, fruit juice, energy drinks, vegetable juices, wine, milk-based products, iced teas and even mineral water. As of the end of September, Nampak had 51.43 per cent stake worth R292.5 million in Nampak Zimbabwe.