Hunyani, Nampak deal awaits CTC approval - Zimbabwe
DailyNews.co.zw - Nov 4th 2014, 09:26
Harare - The Competition and Tariff Commission (CTC) says it will approve the Hunyani Holdings Limited (Hunyani) takeover by South Africa- based Nampak Holdings (Nampak) within the next two weeks.
Ben Chinhengo, the commission’s assistant director, told Business Live that CTC’s board is set to deliberate on the matter.
“Initially, the board meeting had been scheduled for next week, but it was deferred,” said Chinhengo.
This comes as Hunyani’s group secretary Keith Nicholson advised shareholders that the CTC approval was the only condition outstanding.
“Once this is received (the approval) the name change from Hunyani Holdings Limited to Nampak Zimbabwe Limited will proceed,” he said.
Under the takeover, Nampak wholly acquired Zimbabwe Stock Exchange-listed packaging firm Hunyani and merged it with two other local units in a share swap deal.
The Johannesburg Securities Exchange-listed group — already holding a 38, 6 stake in Hunyani — intends to merge the unit with dormant CarnaudMetalbox Zimbabwe Limited (CarnaudMetalbox) and MegaPak Zimbabwe (Private) Limited (MegaPak), in which it has a 49 percent shareholding.
“Nampak proposes to expand its investment in the packaging sector in Zimbabwe,” Hunyani said in July. The new unit will be called Nampak Zimbabwe Limited.”
Delta Corporation holds the other 51 percent in MegaPak.
Two years ago, the company announced the disposal of its Botswana waste collections unit following the closure of the firm’s paper mill, which had been under care and maintenance.
Meanwhile, Nampak is set to inject $10 million into Hunyani over the next 12 months, according to incoming Nampak Zimbabwe’s group chief executive John Van Gend.
The group, which has invested about $20 million into its Zimbabwean businesses over the past five years, will put in $3 million in working capital upon conclusion of the merger.
For the half year ending April 2014, Hunyani recorded a $219 000 loss after tax, while it recorded a profit of $407 000 prior year comparative.
The group retrenched over 80 percent of its employees due to the harsh economic environment in Zimbabwe.
Incorporated in Zimbabwe in 1951, and listed on the ZSE in 1952, Hunyani has traditionally been a financially secure company due to Nampak’s investment.
A manufacturer a wide range of packaging products at specialist operations situated throughout Zimbabwe, the group’s diverse range of products includes folding and corrugated cartons, flexible packaging, sacks, bags, and labels.
According to Nampak, the three companies were deconsolidated in 2007 as Nampak had lost control over the companies due to the threat of indigenisation, price controls, and restrictions on the repatriation of funds from these entities to their holding companies outside Zimbabwe.From © 2014 Associated Newspapers of Zimbabwe (Pvt) Ltd. All Rights Reserved.
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