Online Reporter
Zimpapers Business Hub
Zimbabwe Stock Exchange (ZSE) listed Nampak Zimbabwe is awaiting a determination from the Competition and Tariff Commission (CTC) in its quest to sell 51,43 percent stake in the company to TSL Limited.
Nampak Zimbabwe, majority owned by Nampak Southern Africa Holdings Limited, and TSL Limited have since executed a share purchase agreement for the transaction valued at US$25 million.
The company, in a statement to investors and shareholders, said the transaction was also subject to shareholder approval, which would be sought at an extraordinary general meeting (EGM).
“The company has since finalised the circular to shareholders, which contains the full details of the transaction and the Zimbabwe Stock Exchange (ZSE) has since approved the circular for publication.
“The board had anticipated that the company would have received the determination from the Competition and Tariff Commission and then published the shareholder circular and notice of the EGM,” reads part of the statement.
The company added that while the determination from the CTC is pending, further announcements will be made in line with regulatory requirements as and when there are material developments.
The rationale for the disposal, according to Nampak, is in accordance with its asset disposal plan. Nampak South Africa is selling its stake in Nampak Zimbabwe to TSL Limited.
This transaction is part of Nampak’s broader strategy to divest from non-core assets and reduce debt.
The deal is subject to certain conditions, including shareholder approval for TSL and a mandatory offer to remaining Nampak Zimbabwe shareholders.
TSL will also be required to make a mandatory offer to the remaining shareholders of Nampak Zimbabwe, which can be settled in cash or through a share swap.
This transaction is part of Nampak’s broader strategy to divest from non-core assets and reduce debt.
For TSL, a diversified group with interests in agriculture, logistics and packaging, this acquisition is a strategic move to expand into complementary businesses.
Nampak Zimbabwe, in a recent trading update, said volumes across the business units were expected to improve in the last quarter of the year, driven by stronger seasonal demand in the beverages sector and increased agriculture output.
This comes as group volumes for the third quarter ended June 30, 2025, were 3 percent behind the prior year, mainly due to weaker demand and increased competitor activity for PET/preforms and commercial cartons.
“Metal volumes were also significantly down on prior year volumes in the quarter due to reduced demand and product rationalisation to align with market demand and achieve improved efficiencies,” group managing director Mr John Van Gend said in a trading update.
He said volumes for the 9 months to June 2025 were 13 percent below the prior period due to volume recoveries in the current quarter, which have made up for some of the volume loss in the previous periods.
Resultantly, group revenue for the 9 months to June 2025 was 12 percent below the comparative period.
In terms of segmental performance, at Hunyani Paper and Packaging, third-quarter sales volumes for the corrugated division were in line with the prior year.
Mr Van Gend said sales volumes in the tobacco sector were marginally behind the same period last year due to the slow start on the tobacco season deliveries.
During the period under review, the Cartons, Labels and Sacks Division sales volumes for the third quarter were 34 percent ahead of the prior year due to improved demand for tobacco paper wrap. Commercial packaging was 17 percent ahead of the prior year due to volume recovery.
At Mega Pak, the Plastics and Metals segment third-quarter sales volumes were 14 percent down on the prior year after volumes were affected by increased competitive pressures, as well as higher plant breakdowns due to severe power cuts in Ruwa.
At CarnaudMetalbox, sales volumes were 8 percent ahead of the prior year; however, metal volumes were significantly below prior-year volumes due to market-driven product rationalisation, as well as the impact of the late arrival of raw material at the end of the second quarter.
daniel chigunwe