Nampak had a deal to sell its 51.43% shareholding in Nampak Zimbabwe to TSL for up to $25 million. The deal was announced in October last year and was part of Nampak’s broader strategy to reduce its debt. The proceeds from this sale were specifically intended to help settle the company’s debt.
However, TSL has since withdrawn from the deal, citing that circumstances for motivating the transaction to its shareholders have changed. Nampak has agreed to the termination of the deal.
Nampak, a manufacturer of paper, plastic, and metal packaging, is currently undergoing a major turnaround plan. Since 2023, under CEO Phil Roux, the company has been trying to overcome a significant R5 billion debt. This plan involves management and business model changes, a capital and debt restructuring program, and a focus on its core metals business.
Nampak successfully met a previous goal of repaying R720 million of net debt by the end of September 2024 by disposing of its Liquid Cartons businesses in several locations, including South Africa, Zambia, and Malawi. The company has also exited Nigeria due to substantial forex losses from the depreciation of the naira.
Despite the terminated deal with TSL, Nampak remains committed to its strategic plan of disposing of its Zimbabwean asset on commercially acceptable terms.
