Online Reporter
Tapiwanashe Mangwiro
Senior Business Reporter
South African packaging giant Nampak remains committed to selling its controlling stake in Nampak Zimbabwe, despite the collapse of its proposed US$25 million sale to local diversified group TSL Limited last year.
The Johannesburg Stock Exchange-listed group revealed in its 2026 interim results that the disposal of its 51,43 percent interest in Nampak Zimbabwe was still progressing, with discussions underway with other interested parties.
Nampak said the Zimbabwean business remains classified as a held-for-sale asset as the group pursues its strategy of exiting the local market.
“The disposal of Nampak’s 51,43 percent interest in Nampak Zimbabwe Limited is progressing with interested parties, and the business continues to be classified as held for sale,” the company said.
“Proceeds from the disposal are expected to reduce group net debt and eliminate risk associated with operating in the Zimbabwe economy.”
The update comes nearly a year after Nampak announced plans to sell its stake in the Zimbabwe Stock Exchange-listed packaging manufacturer to TSL Limited.
In October 2024, TSL disclosed that it had made an offer to acquire Nampak’s majority shareholding for US$25 million and that the offer had been accepted.
At the time, TSL said it had begun preparations to conclude and execute the sale and purchase agreement while also seeking shareholder and regulatory approvals.
The transaction was expected to trigger a mandatory offer to minority shareholders of Nampak Zimbabwe in line with local regulations once the disposal had been implemented.
Nampak Zimbabwe, which manufactures paper, plastic and metal packaging products, forms part of the broader Nampak group and is one of the leading packaging companies operating in Zimbabwe.
However, the proposed transaction failed to reach completion.
In September 2025, Nampak announced that TSL had withdrawn from the deal despite completing a successful due diligence exercise and securing competition authority approval.
According to Nampak, TSL advised that circumstances had changed, making it difficult to motivate the acquisition to its shareholders.
The South African group subsequently agreed to terminate the transaction.
“Nampak remains committed to its strategic plan to dispose of its Zimbabwean assets on commercially acceptable terms,” the company said at the time.
The proposed disposal formed part of a broader restructuring programme aimed at reducing debt and simplifying Nampak’s geographic footprint.
The company has already exited Nigeria, another market that had exposed the group to significant foreign currency volatility following the sharp depreciation of the naira.
Nampak has consistently argued that the disposal of its Zimbabwean operations would help lower debt levels while reducing exposure to economic and currency-related risks.
The latest interim results show the group recognised a loss of R114 million from discontinued operations during the six months under review.
The loss was primarily attributable to the after-tax effect of a R136 million impairment relating to Nampak Zimbabwe.
This contrasts sharply with the corresponding period last year, when discontinued operations generated a profit of R2,5 billion, largely driven by accounting gains associated with the disposal of the group’s Nigerian beverage canning business.
While Nampak did not identify the parties currently engaged in discussions regarding the Zimbabwean asset, its latest update signals that the company has not abandoned plans to exit the market despite the setback encountered with the failed TSL transaction.
A successful disposal for Nampak would mark another significant step in its turnaround strategy, while for the Zimbabwean market, it could pave the way for a new controlling shareholder in one of the country’s longest-established packaging manufacturers.
Peter Tanyanyiwa