Harare - Packaging group Nampak, the parent of NamPak Zimbabwe, on Thursday issued a further cautionary statement advising its shareholders that it has been in exclusive negotiations with a preferred bidder in respect of the potential disposal of the Nampak Glass business, which may have a material effect on the price of the company’s shares, if concluded.
Nampak said negotiations are still in progress after its early projections in February that it aimed to conclude the purchase agreement and sale by April 2019.
The packaging group announced the decision late last year to dispose of its Glass business, after it initiated a competitive disposal process, which resulted in Nampak entering into an exclusivity arrangement with the preferred bidder.
Nampak stated that the preferred bidder was a black-owned South African company, which is supported by a large international corporation that has significant glass expertise.
“Further to the cautionary announcement released by the Company on 28 February 2019, shareholders are advised that negotiations are still in progress with the preferred bidder in respect of the potential disposal of the Nampak Glass business which, if successfully concluded, may have a material effect on the price of the Company's securities.
“The parties are still fully committed to the conclusion of this transaction, however taking into account the complexities of a transaction of this nature, the process is taking longer than anticipated,” said Nampak in a further cautionary statement.
It added that the transaction, if concluded, will be subject to competition authority approval and dependent upon the ultimate control structure of the purchaser and its shareholders, may constitute an intermediate or large merger.
Accordingly, shareholders are advised to continue exercising caution when dealing in the Company's securities until a full announcement is made.
Nampak is Africa's largest diversified packaging manufacturer, and has been listed on the JSE Limited since 1969. Nampak operates from 25 sites in South Africa, contributing approximately 58 percent to group revenue, 18 sites in the rest of Africa, contributing 34 percent to group revenue, as well as 8 sites in the United Kingdom, contributing 8 percent to group revenue.
Founded in 1993 as a joint venture between Delta Corporate Zimbabwe and Nampak South Africa, Megapak Zimbabwe is now a leading manufacturer of plastic packaging products.
The Company is principally engaged in the manufacturing of paper, plastic and metal packaging products, as well as leasing biological assets and the timber processing plant. The Company's segments include Paper, Plastics & Metals, and Services. The Paper segment includes Hunyani Corrugated Products Division, Hunyani Cartons, Labels & Sacks Division, Hunyani Management Services Division, Hunyani Forests Limited, Hunyani Properties Limited and Softex Tissue Products (Private) Limited. The Plastics & Metals segment includes Mega Pak Zimbabwe (Private) Limited and CarnaudMetalbox Zimbabwe Limited. The Corrugated Products Division manufactures corrugated containers, and specialized packaging covering the tobacco, horticulture, floriculture and citrus sectors for local and export market.
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