Nampak has announced the termination of its deal to sell its 51.43% shareholding in Nampak Zimbabwe to TSL for up to $25 million. The packaging company revealed this update on September 17, 2025.
Originally announced in October last year, the deal was expected to contribute to Nampak’s asset disposal plan, aimed at reducing the group’s net debt and mitigating the risks associated with the volatile Zimbabwean economy. However, Nampak stated that TSL had notified them of a change in circumstances that affected their ability to present the transaction to their shareholders, leading to their decision to withdraw from the deal, which Nampak accepted.
Despite this setback, Nampak remains committed to disposing of its Zimbabwean asset on commercially acceptable terms as part of its strategic plan.
Nampak Zimbabwe manufactures a range of packaging products, including paper, plastic, and metal, and is part of the larger Nampak group, which serves clients such as Coca-Cola and Tiger Brands. The company has been grappling with a significant R5 billion debt burden incurred during its expansion efforts across Africa.
Under CEO Phil Roux, Nampak has initiated a comprehensive turnaround strategy since 2023, which includes management changes, a review of its business model, a capital and debt restructuring program, a rights offer, and a renewed focus on its core metals business.
The company successfully met its lender requirement to repay R720 million of net debt from asset disposals by the end of September 2024, utilizing proceeds from the divestitures of its Liquid Cartons businesses in South Africa, as well as Nampak Zambia, Nampak Malawi, and Rigid Plastic SA.
Additionally, Nampak has exited the Nigerian market, where foreign exchange losses surged due to the depreciation of the naira against the dollar, leading to increased costs for raw materials sourced in US currency.