CAPE TOWN — South African packaging giant Nampak has confirmed that its planned $25 million sale of a majority stake in Nampak Zimbabwe to TSL has fallen through, dealing a setback to the group’s broader debt-reduction strategy.
The Johannesburg-based company said Tuesday it received formal notice from TSL withdrawing from the deal, despite a completed due-diligence process and competition authority approval. TSL cited changing circumstances in motivating the transaction to its shareholders. Nampak, which agreed to terminate the agreement, still intends to dispose of the Zimbabwean business “on commercially acceptable terms.”
Announced in October 2024, the transaction would have seen Nampak offload its 51.43 percent stake in Nampak Zimbabwe and apply the proceeds toward cutting net debt, which once ballooned to about $265 million after an ill-fated African expansion. The sale was expected to reduce exposure to Zimbabwe’s volatile economy and currency risk.
Under CEO Phil Roux, Nampak has been implementing a sweeping turnaround since 2023, including board and management changes, a business model review, capital and debt restructuring, a rights offer, and a renewed focus on its core metals packaging business. The company has already met lender requirements to repay roughly $38 million of net debt by September 2024 through sales of its Liquid Cartons units in South Africa as well as operations in Zambia, Malawi, and its Rigid Plastics division.
Nampak has also exited Nigeria, where steep naira depreciation drove up the cost of raw materials priced in U.S. dollars and eroded profits.
Despite the latest setback, the group says it remains committed to selling the Zimbabwean operation and continuing its deleveraging programme.
