- Nampak Zimbabwe is nearing the completion of a $25 million acquisition with TSL Limited
- Upon completion, TSL will acquire a 51.43% stake in Nampak Zimbabwe
- The acquisition remains subject to legal approval before finalization
Harare-Nampak Zimbabwe, the country's largest packaging company, is nearing completion of its $25 million acquisation with TSL Limited.
According to the latest circular released by the group, the bidder has accepted the deal, pending the conclusion of binding transaction agreements and necessary regulatory approvals.
The proposed disposal of Nampak Zimbabwe's shares to TSL remains subject to various suspensive conditions. These include the conclusion of binding transaction agreements and obtaining all necessary regulatory approvals.
Upon fulfilment of these conditions, TSL will acquire a 51.43% stake in Nampak Zimbabwe for $25 million.
Following the disposal, TSL is required to make a mandatory offer to Nampak Zimbabwe's remaining shareholders.
This offer can be settled in cash or through a share swap.
The acquisition is expected to have a positive impact on both companies, with TSL benefiting from in-house manufacturing of packaging materials and Nampak gaining accelerated growth, improved competitiveness.
TSL Limited is a diversified holding company with interests in tobacco auctioning, printing and packaging, agricultural inputs, storage and distribution, and services.
The company operates through various segments, including logistics, agriculture, real estate, and services.
By acquiring a majority stake in Nampak Zimbabwe, TSL aims to reduce production costs, enhance efficiency, and boost growth prospects.
The $25 million acquisition price will be instrumental in expanding Nampak Zimbabwe's local operations and completing stalled projects.
This includes the acquisition of an eight-colour printer for self-opening paper bags from Bullpak, facilitating expansion and modernization.
However, the acquisition remains pending legal approval.
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