TSL,Nampak deal inches closer to completion
STAFF WRITER
Tobacco Sales Limited (TSL), a publicly traded agro-business company and Nampak Southern Africa Holdings Limited, a South African packaging conglomerate, are in the final leg of the Nampak Zimbabwe sell-off deal, Business Times can report.
It follows a recent agreement between TSL and Nampak Southern Africa Holdings Limited wherein TSL would pay US$25m to acquire a 51.43% stake in Nampak Zimbabwe.
Yesterday, executives from both companies confirmed the latest development.
They said the deal is subject to the fulfilment of various suspensive conditions, including the signing of binding transaction agreements, and obtaining all necessary regulatory approvals.
The deal also needs to be approved by shareholders.
TSL company secretary, Fadzayi Pedzisayi said: “……Shareholders and the investing public are advised that the company and Nampak SAHL are still engaged in processes to finalise and execute the Sale and Purchase Agreement.
“The transaction will require shareholder approval which will be sought at an extraordinary general meeting (EGM).
“The Company is therefore preparing a circular to shareholders which will contain full details regarding the transaction, a notice for the EGM, requisite shareholder resolutions for the transaction and other required statutory and regulatory approvals.
Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments.”
Nampack company secretary, Keith Nicholson, weighed in saying: “Further to the cautionary Announcement dated 22 October 2024 regarding the proposed disposal of a 51.43% shareholding in the company by Nampak Southern Africa Holdings Limited, shareholders and the investing public are advised that negotiations between the seller and TSL Limited (the Purchaser) are still ongoing. “This follows the seller’s acceptance of a binding offer from the Purchaser for the acquisition of the shares at a purchase consideration of US$ 25m. The disposal remains subject to the fulfilment of various suspensive conditions, including the conclusion of binding transaction agreements, and obtaining all necessary regulatory approvals.
“Accordingly, shareholders and the investing public are urged to continue to exercise caution when dealing in the company’s securities until a full announcement is made.
A further announcement will be issued once the binding transaction agreements have been executed.”
It has since been established that Nampak Southern Africa Holdings Limited, was forced to sell off its controlling ownership in Nampak Zimbabwe as part of a plan to reduce its crippling debt.
