Nampak loses interest in Zimglass

By Lovemore Zigara

South African packaging company Nampak has lost interest in taking over the country’s sole flint glassmaker Zimbabwe Glass Industries (Zimglass).

The Johannesburg Stock Exchange listed company specialises in glass, plastics, paper and tin packaging.

Last year, the company made inquiries about taking over Zimglass but since then there has not been any movement.

Zimglass, a subsidiary of the Industrial Development Corporation (IDC), has been insolvent since 2010 and voluntarily applied for judicial management in 2014 citing lack of capital, debt overhang and mismanagement.

Its assets stood at $19.2 million as at December 2014 while its liabilities were at $31.2 million.

The Gweru-based glassmaker has since been liquidated.

Mr Winsley Militala, the judicial manager of Zimglass told Business Chronicle that they were still looking for investors to take over operations at the company.

“There has not been any movement from them (Nampak) since they requested Zimglass’ balance sheet and financial statement and we availed them.

“Since then we have been waiting from them to make a formal expression of interest but nothing has happened,” said Mr Militala.

“I believe they have lost interest and we are still pursuing an investor to take over the operations of the company.”

He said preference for selling off the company’s assets would be given to bidders with “technical and financial capacity” to resume operations at the glassmaker.

Zimglass was established in 1963 as a subsidiary of Consol Glass and became an IDC subsidiary in 1984.

The firm manufactures glass packaging material for alcoholic and sparkling beverages, food, liquor and pharmaceutical segments.

Its major domestic customers include Delta Beverages, African Distillers, Mutare Bottling Company, Straitia Investments, Olivine Industries, Datlabs and E. Snell and Company. The Chronicle