Nampak has confirmed that its plan to sell a 51.43% stake in Nampak Zimbabwe to TSL for up to $25 million (R435 million) has been called off. The transaction, first announced in October last year, will not proceed after TSL withdrew, citing changes in circumstances affecting its ability to justify the deal to shareholders. Nampak agreed to the withdrawal.
The Johannesburg-based packaging company said it remains committed to its strategy of divesting its Zimbabwean operations on commercially viable terms. The proposed sale was intended to reduce the group’s net debt and mitigate the risks associated with the Zimbabwean economy, with proceeds earmarked for debt repayment.
Nampak Zimbabwe produces paper, plastic, and metal packaging and is part of the broader Nampak group, supplying clients such as Coca-Cola and Tiger Brands. The company has been working to recover from a R5 billion debt burden incurred during its African expansion.
Under CEO Phil Roux, Nampak has pursued a comprehensive turnaround plan, including management changes, a review of its business model, debt restructuring, a rights offer, and a renewed focus on its core metals operations. The group has met lender requirements to repay R720 million in net debt through prior asset disposals in South Africa, Zambia, Malawi, and its rigid plastics business.
Nampak has also exited Nigeria, where currency depreciation and rising US dollar-based raw material costs had increased financial pressures.
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