Philemon Jambaya
Zim Now Editor
South African packaging giant, Nampak Limited, has finalized a sale and purchase agreement to offload its 51.43% stake in its Zimbabwean subsidiary to local company TSL Limited. The deal, valued at US$25 million, is part of Nampak's broader strategy to divest from non-core assets and reduce debt. The transaction is still subject to regulatory and other conditions.
The sale of the Zimbabwean unit is a key part of Nampak's 2023 asset disposal plan, which aims to raise approximately ZAR2.6 billion (US$148.09 million) over an 18-month period. This capital will be used to pay down the group's debt as part of a major turnaround strategy.
According to a statement from Nampak Zimbabwe Limited, the sale agreement between Nampak Southern Africa Holdings Limited (the seller) and TSL Limited (the purchaser) remains subject to "various suspensive conditions." Both shareholders and the investing public have been advised to exercise caution when trading the company's securities until a full announcement is made regarding the deal's implementation.
The news follows a period of financial improvement for Nampak Zimbabwe. The subsidiary returned to profitability in the half-year ending March 31, 2025, posting a profit of ZAR68 million (US$3.88 million), a significant turnaround from the ZAR87.1 million (US$4.97 million) loss reported in the same period last year. This improved performance occurred as the group was positioning the business for sale. The US25 million sale price is expected to exceed the subsidiary’s book value, which was recorded a ZAR600.1million(US34.28 million)as of March 2025.
The payment structure for the acquisition is tiered. US$23 million of the purchase price is due upon the fulfillment of specific conditions, including TSL securing necessary funding and obtaining shareholder and regulatory approvals. The remaining US$2 million will be paid in two equal tranches of US$1 million on the first and second anniversaries of the initial payment. All proceeds will be paid in US dollars
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