TSL Limited buys Nampak Zimbabwe stake for US$25 m...

TSL Limited buys Nampak Zimbabwe stake for US$25 million

By Nyashadzashe Ndoro

Chief Reporter

The Zimbabwe Stock Exchange listed packaging giant, Nampak Limited, has accepted a US$25 million offer from TSL Limited for its 51.43% stake in Nampak Zimbabwe Limited.

The acquisition is subject to regulatory approvals and binding transaction agreements.

This sale aligns with Nampak's asset disposal plan, prioritising high-value assets. TSL Limited must now obtain shareholder approval at an extraordinary general meeting.

Following completion, TSL Limited will make a mandatory offer to purchase the remaining Nampak Zimbabwe shares. Shareholders of both companies are advised to exercise caution when trading securities.

"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 ("Mandatory Offer"). 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.

"Accordingly, the purpose of this announcement is to inform shareholders of the Disposal under consideration by the board of directors of Nampak ("Board") and to advise shareholders to exercise caution when dealing in the Company's securities until a further announcement is released by Nampak in this regard. A further announcement will be released once the binding transaction agreements have been executed, following further negotiations.

"The rationale for the Disposal is in accordance with Nampak's asset disposal plan: the company is an asset of high value, being prioritized for disposal," Nampak stated in a statement.

The deal's progress will be communicated through further announcements. Regulatory clearances and shareholder approvals are pending.

TSL also issued a cautionary statement satating, "The Transaction will require Shareholder approval which will be sought at an extraordinary general meeting ("EGM"). The Company has commenced the process of 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."