TSL Limited’s US$25 million acquisition of Nampak Zimbabwe hits a snag

HARARE – The proposed acquisition of a 51.43% stake in Nampak Zimbabwe Limited by TSL Limited has encountered delays due to regulatory approvals, according to a cautionary announcement issued by Nampak Zimbabwe.

The deal, valued at US$25 million, was announced last year, with TSL Limited expected to make an offer to buy out the remaining Nampak shareholders, a mandatory offer.

However, the transaction requires shareholder approval, which will be sought at an extraordinary general meeting (EGM) whose date is yet to be announced.

Both TSL Limited and Nampak Zimbabwe have advised their shareholders to exercise caution when dealing in the company’s securities until a full announcement is made.

“Further to the cautionary announcement dated 5 December 2024, regarding the proposed disposal of a 51.43% shareholding in the Company by Nampak Southern Africa Holdings Limited (‘the Seller’), shareholders and the investing public are advised that negotiations between the Seller and TSL Limited (“the Purchaser”) are still ongoing. These discussions follow the Seller’s acceptance of a binding offer from the Purchaser, as detailed in the previous cautionary announcement.

“Accordingly, shareholders and the investing public are urged to continue to exercise caution when dealing in the Company’s securities until a full announcement is made.

“A further announcement will be issued once the binding transaction agreements have been executed,” the company stated.

The acquisition of Nampak Zimbabwe Limited, a leading packaging manufacturer in Zimbabwe, is likely to have significant implications for the packaging industry in Zimbabwe and the stock market.

Delta Beverages, a major customer of Nampak Zimbabwe, has a 22% shareholding stake in the company.

The transaction comes six years after TSL Limited disposed of its shares in Nampak for US$15 million. The US$25 million for the 51.43% stake values Nampak Zimbabwe at US$48.7 million.

TSL Limited’s acquisition of a majority stake in Nampak Zimbabwe Limited is expected to be completed in the coming months, subject to regulatory approvals. Both Nampak and TSL are listed on the Zimbabwe Stock Exchange.