TSL Finalises US$25m Deal to Acquire Nampak Zim St...

TSL Finalises US$25m Deal to Acquire Nampak Zim Stake

Oscar J Jeke- Zim Now Reporter

TLimited has sealed a US$25 million agreement to acquire a 51.43% stake in Nampak Zimbabwe from South Africa’s Nampak Holdings, gaining control of the country’s largest packaging manufacturer.

The deal, still subject to regulatory and other conditions, was confirmed in a cautionary statement by Nampak Zimbabwe. Shareholders and the public have been urged to remain cautious until full implementation.

Nampak Zimbabwe, co-founded by Nampak SA and Delta Corporation in 1993, manufactures packaging products such as PET bottles, crates, paper cartons, and metal cans. Delta, a major client, holds a 22% stake.

The valuation pegs Nampak Zimbabwe’s full value at about US$48.7 million. TSL, which sold its stake in the firm for US$15 million six years ago, now plans to make an offer for the remaining shares.

The sale aligns with Nampak SA’s asset disposal strategy to raise R2.6 billion and reduce debt. The group recently exited Nigeria in a US$68.5 million deal and is selling its South African liquid cartons unit for R450 million.

While Nampak SA previously signaled no urgency to leave Zimbabwe, local currency volatility and a US$52 million government debt may have influenced the decision. In the year ending September 2023, Nampak Zimbabwe contributed R84.8 million in profits.

TSL operates across logistics (Bak Logistics), real estate (TSL Properties), vehicle hire (Avis), agrochemicals (Agricura), auctions (Tobacco Sales Floor), and tobacco packaging (Propack).