Regulatory Hurdles Delay TSL's US$25m Nampak Acqui...

Regulatory Hurdles Delay TSL's US$25m Nampak Acquisition

Nyashadzashe Ndoro

Chief Reporter

The acquisition of a 51.43% stake in Nampak Zimbabwe Limited by TSL Limited has hit a snag, with regulatory approvals delaying the completion of the transaction.

The deal, valued at US$25 million, was announced earlier, with TSL Limited expected to make an offer to buy out the remaining Nampak shareholders.

According to a cautionary announcement issued by TSL Limited, the company and Nampak Southern Africa Holdings Limited are still engaged in processes to finalize and execute the Sale and Purchase Agreement. The transaction requires shareholder approval, which will be sought at an extraordinary general meeting.

Both TSL Limited and Nampak Zimbabwe have advised their shareholders to exercise caution when dealing in the companies' securities until a full announcement is made.

“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 that 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," said Fadzayi Pedzisayi, TSL Company Secretary, in a notice to shareholders.

The acquisition of Nampak Zimbabwe Limited, a leading packaging manufacturer in Zimbabwe, is likely to have significant implications for the packaging industry and the stock market. Delta Beverages holds a 22% stake in the packaging company.

Nampak Zimbabwe produces a range of products, including PET bottles, crates, bottle tops, plastic lids, and containers used for Chibuku Super by Delta.

The transaction comes six years after TSL Limited disposed of its shares in Nampak for US$15 million. The US$25 million for the 51.43% stake values Nampak Zimbabwe at US$48.7 million.

TSL Limited's acquisition of a majority stake in Nampak Zimbabwe Limited is expected to be completed in the coming months, subject to regulatory approvals.