NAMPAK Limited, the largest diversified packaging company in Africa, issued an update on Monday on key company developments including the asset disposal program and the refinancing of the group.
Asset disposal program and debt repayment
The lender requirement to repay R720 million of net debt from disposals by 30 September 2024 has been achieved inter alia utilising the proceeds from the disposals of the Liquid Cartons businesses in South Africa, Nampak Zambia, Nampak Malawi and Rigid Plastic South Africa.
The last remaining condition for the completion of the sale of the Nigerian Beverage business is the approval by the Nigerian Federal Competition and Consumer Protection Commission. The application has been submitted and Nampak awaits their decision.
The other assets classified as discontinued operations are in the process of disposal or closure and shareholders will be updated on their status when the results for the year-end 30 September 2024 are released.
Refinancing
In September 2024 the group successfully concluded the refinancing of the group, utilising a significantly simplified funding structure, inclusive of only a minor foreign debt component. The Standard Bank of South Africa financed the transaction in full. Nampak has the option to include other lenders in the funding structure on or before 25 March 2025. Debt covenants have been reset in accordance with the group’s expected cashflow and earnings profile and interest rates are adjusted in accordance with the total debt outstanding.
Further details of the refinancing will be made available in the financial statements for the year ended 30 September 2024.
Nampak expects to release its annual results for the year ending 30 September 2024 on the Stock Exchange News Service on 2 December 2024. Nampak will be in a closed period from 1 October 2024 until the release of the annual results.
