Online Reporter
Business Reporter
Nampak Zimbabwe has reiterated its cautionary advice regarding the proposed sale of Nampak Southern Africa Holdings Limited’s (Nampak SAHL) 51,43 percent shareholding to TSL Limited.
The proposed sale, estimated at US$25 million, aligns with Nampak’s broader asset disposal plan aimed at reducing net debt and mitigating exposure to the economic challenges in Zimbabwe.
Both companies issued cautionary statements, reminding investors that while negotiations are progressing, the transaction is contingent on regulatory and shareholder approvals, which remain pending.
In a statement, Keith Nicholson, Nampak’s company secretary, emphasised the need for caution among shareholders.
“Shareholders and the investing public are urged to continue to exercise caution when dealing in the company’s securities until a full announcement is made,” Mr Nicholson said.
“Negotiations between the seller (Nampak SAHL) and TSL Limited are ongoing, following the seller’s acceptance of a binding offer from TSL.
“However, the disposal remains subject to various suspensive conditions, including the conclusion of binding agreements and necessary regulatory approvals.”
On the purchaser’s side, TSL confirmed that it was actively working to meet these requirements and anticipated handling any subsequent mandatory offer independently, as per regulatory obligations.
Under Zimbabwe’s Companies and Other Business Entities Act and the Zimbabwe Stock Exchange listing rules, the purchaser must extend a mandatory offer to remaining shareholders following completion of the acquisition.
According to Fadzai Pedzisayi, TSL’s company secretary, “The transaction will require shareholder approval, which will be sought at an extraordinary general meeting.
“We are preparing a circular for shareholders that will detail the transaction, notice for the EGM, and the requisite shareholder resolutions.
“We advise shareholders to exercise caution in dealing with the company’s securities.”
Ms Pedzisayi added that further announcements would follow in line with regulatory requirements as progress is made on finalizing agreements.
The sale of Nampak Zimbabwe, a major local player in paper, plastic, and metal packaging, represents a strategic shift for Nampak SAHL, reflecting its intent to streamline operations and reduce financial exposure in high-risk markets.
Proceeds from the sale will be directed towards further debt reduction, strengthening Nampak SAHL’s balance sheet.
As part of the transaction, TSL has confirmed its capacity to fulfill the mandatory offer requirement within the prescribed time frame, either by cash or via a share swap using TSL shares.
This mandatory offer will be conducted independently by TSL, with no further involvement from Nampak SAHL.
Pending regulatory and shareholder approvals, this transaction is expected to benefit both companies. For Nampak SAHL, it contributes to debt alleviation and reduced exposure to Zimbabwe’s economic volatility.
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