Nampak seeks to expand Zim operations

Harare - Nampak [JSE:NPK], Africa’s biggest maker of beverage cans, plans to expand its investment in the packaging sector in Zimbabwe, through consolidation of its interests in the country.

The planned new structure will see Nampak merging its interests in Zimbabwe Stock Exchange (ZSE)  listed Hunyani Holdings Limited, MegaPak and CarnaudMetalbox.  

As part of the merger, Nampak will inject US$2.6m in exchange for more shares in the company. 

Nampak believes a consolidated entity will provide a solid base for further investment in modernising operations to improve efficiencies and provide a basis for growing export markets. 

After the merger Nampak will own 51.43% of the new entity; ZSE-listed and SABMiller [JSE:SAB] owned Delta Corporation will own 22.59% while another ZSE-listed company, TSL, will own 16.53%. 

The proposed transaction will make the enlarged group the largest packaging company in Zimbabwe.

“With cost efficiencies and economies of scale, this should drive revenue growth and profitability,” said the company. 

The new entity will be called Nampak Zimbabwe and has published its pre-listing statement in line with ZSE requirements.

 - Fin24