Nampak Zimbabwe disposal negotiations are still ongoing

Nampak Zimbabwe says negotiations on the proposed disposal of 51,43 percent stake to TSL Limited are still ongoing, and the deal remains subject to the fulfilment of various suspensive conditions.

Nampak South Africa, the parent company for Nampak Zimbabwe, has since accepted a binding offer from TSL Limited for the acquisition of the shares at a purchase consideration of US$ 25 million.

“Stakeholders and the investing public are advised that negotiations between the seller and TSL Limited (“the purchaser”) are still ongoing.

“The disposal remains subject to the fulfilment of various suspensive conditions, including the conclusion of binding transaction agreements and obtaining all necessary regulatory approvals,” Nampak said.

Some of the regulators that normally approve such deals include the RBZ, the CTC, the ZSE among others.

It added that 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,” the company said.

In a previous statement, Nampak said the disposal remains subject to various suspensive conditions, including the conclusion of binding transaction agreements and obtaining all necessary regulatory approvals.

In terms of the Companies and Other Business Entities Act (Chapter 24:31) and the Zimbabwe Stock Exchange (ZSE) Listings Rules, the purchaser is required to make an offer to the remaining shareholders of Nampak Zimbabwe following the disposal being implemented.

“The purchaser has confirmed that it has the capacity to undertake the mandatory offer within the regulated timeframes, through settlement by either cash or by way of a share swap using its own shares.

“For the avoidance of doubt, the mandatory offer will be implemented by the purchaser independently, following the implementation of the disposal, and without any involvement of Nampak,” it said.

Nampak noted that a further announcement will be released once the binding transaction agreements have been executed, following further negotiations.

It said the rationale for the disposal is in accordance with Nampak’s asset disposal plan; the company is an asset of high value, being prioritised for disposal.

In a trading update for the quarter to June 30, 2024, Nampak Zimbabwe group volumes were 2 percent ahead of the prior year, with most of the product lines higher than last year except for high-density polyethylene (HPDE) and commercial cartons, which were affected by a slowdown in demand and increased competitor activity.

Cumulative volumes for the 9-month period to June 2024 were 3 percent below prior year due to volume recoveries in the current quarter, which have made up for the volume losses in the previous quarter, particularly in the paper cluster as well as in metals.-ebsnessweekl