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ZIMBABWE Stock Exchange (ZSE)-listed company, TSL Limited, says its lucrative US$25 million offer for the acquisition of 51,43 percent shareholding in Nampak Zimbabwe Limited has been accepted.
Both entities are now engaged in processes to finalise and execute the Sale and Purchase Agreement. In a notice to shareholders, TSL Limited said the transaction will require shareholder approval, which will be sought at an extraordinary general meeting.
The firm has commenced the process of preparing a circular to shareholders, which 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.
On its part, Nampak confirmed entering into negotiations. It noted that in terms of the Companies and Other Business Entities Act (Chapter 24:31) and the ZSE Listings Rules, the Purchaser is required to make an offer to the remaining shareholders of Nampak Zimbabwe following the disposal being implemented.
“The Purchaser has confirmed that it has the capacity to undertake the Mandatory Offer within the regulated timeframes, through settlement by either cash or by way of a share swap using its own shares.
“For the avoidance of doubt, the Mandatory Offer will be implemented by the Purchaser independently, following the implementation of the Disposal and without any involvement of Nampak,” reads part of the notice.
Nampak added that the rationale for the disposal is in accordance with Nampak’s asset disposal plan as the company is an asset of high value, being prioritised for disposal.
TSL is an integrated and intelligent handler of all movements in the agriculture value chain. The group provides comprehensive solutions in the agriculture industry from seed to shelf with inputs and packaging.
On the other hand Nampak is engaged in the manufacturing of paper, printing and packaging products, leasing biological assets and the timber processing plant. It operates through segments in the printing and converting, plastics and metals and services.
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