TSL concludes US$25million Nampak takeover deal
Nampak Zimbabwe Limited last week announced the completion of the sale of a 51,43 percent stake, in the company, to TSL Limited in a landmark transaction valued at US$25 million, marking a significant shift in the country’s packaging industry.
The announcement follows a cautionary statement issued earlier last week by Nampak Zimbabwe’s Company Secretary, Mrs Sheila Lorimer, advising shareholders and the investing public about the conclusion of a sale and purchase agreement between Nampak Southern Africa Holdings Limited and TSL Limited.
Mrs Lorimer wrote to shareholders, “Further to the cautionary announcement dated March 17, 2025, regarding the proposed disposal of a 51,43 percent shareholding in the Company by Nampak Southern Africa Holdings Limited (“the Seller”), shareholders and the investing public are advised that the Seller and TSL Limited (“the Purchaser”) have concluded a sale and purchase agreement in respect of the sale, which agreement remains subject to various suspensive conditions.”
However, since the deal is subject to various suspensive conditions, Nampak urged stakeholders to exercise caution until a full announcement is made regarding the implementation of the disposal.
“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 regarding the implementation of the disposal,” she concluded.
Nampak Zimbabwe, a leading manufacturer of packaging materials serving diverse industries in Zimbabwe and Southern Africa, aims to enhance operational efficiency and accelerate growth through this strategic sale.
TSL Limited, a diversified holding company with interests spanning tobacco auctioning, agricultural inputs, and now packaging, sees the acquisition as an opportunity to consolidate its market position and streamline production processes.
“This acquisition represents a strategic alignment of resources,” explained Tinashe Haparari, an equities analyst. “It underscores their commitment to enhancing operational efficiency and accelerating growth within the packaging industry.”
Analysts have expressed optimism about the acquisition’s potential impact on TSL Limited’s market strategy.
“Through integrating Nampak Zimbabwe’s packaging capabilities, TSL aims to streamline production processes and achieve significant cost savings,” remarked Justin Fusire, an analyst at Eagle Investments. “This move could potentially strengthen TSL’s competitive edge in the market.”
The US$25 million acquisition price is earmarked for expanding Nampak Zimbabwe’s local operations and completing stalled projects, including the acquisition of an eight-colour printer for self-opening paper bags from Bullpak.
This investment is expected to modernise production facilities and enhance Nampak Zimbabwe’s market competitiveness in the packaging industry.
“This strategic acquisition by TSL Limited is expected to inject fresh momentum into Nampak Zimbabwe’s growth trajectory,” noted Grace Mukoko, a senior analyst at Capital Insight Partners.
“The capital infusion will support modernisation efforts and enable Nampak Zimbabwe to capitalise on emerging market opportunities.”
The acquisition process remains contingent upon regulatory approvals and the fulfilment of suspensive conditions. Both Nampak Zimbabwe and TSL Limited have urged shareholders and stakeholders to exercise caution until the transaction is formally completed.
Once finalised, TSL Limited will extend a mandatory offer to the remaining shareholders of Nampak Zimbabwe in compliance with regulatory requirements.
With the local economic landscape continuing to evolve, the acquisition of Nampak Zimbabwe by TSL Limited marks a significant milestone for both companies and the packaging industry.
Industry observers anticipate a transformative impact, expecting the merger to reshape Zimbabwe’s packaging manufacturing sector and bolster economic prospects.
For stakeholders, the impending union between Nampak Zimbabwe and TSL Limited represents not just a strategic acquisition but a pivotal moment in shaping the future of packaging manufacturing in Zimbabwe.-chroncile
