Nampak revives Zimbabwe exit
LIVINGSTONE MARUFU
South African packaging giant Nampak has renewed efforts to dispose of its 51.43% controlling stake in Nampak Zimbabwe as part of the group’s strategy to exit the local market.
The latest move comes after the collapse last year of a proposed US$25m sale of Nampak’s Zimbabwe operation to local diversified group TSL Limited.
In a statement, Nampak Zimbabwe company secretary Sheila Lorimer said discussions with potential buyers were now underway.
“Nampak Zimbabwe Limited’s (NZL) shareholders are reminded that the company’s ultimate parent company, Nampak Limited, continues to disclose its 51.43% shareholding in NZL as an asset held for sale and that discussions with potential acquirers are ongoing,” Lorimer said.
“Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made.”
The disposal is expected to provide Nampak with an opportunity to reduce group net debt while eliminating its exposure to the risks associated with operating in Zimbabwe.
In October 2024, TSL disclosed that it had made an offer to acquire Nampak’s majority stake for US$25m, which Nampak had accepted.
At the time, TSL had begun preparations to conclude and execute the share sale and purchase agreement while seeking the necessary shareholder and regulatory approvals.
The transaction was expected to trigger a mandatory offer to Nampak Zimbabwe’s minority shareholders in line with local regulations once the acquisition had been completed.
However, the proposed deal ultimately failed to reach completion amid shifting macroeconomic conditions and concerns among TSL shareholders over the risks associated with the acquisition.
Despite clearing key regulatory hurdles, including approval from the Competition and Tariff Commission, TSL’s board withdrew from the Share Sale Agreement after major shareholders raised concerns over the transaction.
The investors were reportedly wary of the acquisition’s risk profile and questioned whether the necessary approval would be secured at an extraordinary general meeting.
Persistent currency volatility, inflationary pressures and unpredictable market conditions further undermined confidence in the long-term viability of the transaction.
TSL subsequently reassessed the economic rationale for acquiring Nampak Zimbabwe, with concerns reportedly centred on the unit’s significant working capital requirements and the uncertainty surrounding future profitability.
Nampak Zimbabwe manufactures paper, plastic and metal packaging products and is part of the broader Nampak group. It is one of the country’s leading packaging manufacturers.
