Debt-laden Nampak has told shareholders that its life-saving debt refinancing has been successfully implemented from September 29 and the final agreements for its turnaround plan have been signed.
The debt refinance package that the JSE-listed manufacturer negotiated with lenders and announced in August hinged on successful implementation of a rights offer alongside a robust asset disposal plan.
Last week, the Johannesburg-based group announced it had raised R1bn from its shareholders after its rights offer was oversubscribed.
Nampak said it has been making strides in exiting its businesses outside SA, including an agreement with Canda T Investment to sell a property in its Tanzanian manufacturing business for $5.5m (R109m) and a deal with Twinings Ovaltine and the property and equipment of its now mothballed Nigeria metals business for 7.50bn naira (R180m) in a bid to streamline operations and reduce debt.
CEO Phil Roux previously emphasised debt restructuring as a suitable enabler for its restructuring and turnaround plan as it exits noncore businesses. Merging Bevcan and Divfood is also a key pillar of a strategy that the company has indicated is unfolding as expected.
“Strong support from the big four SA banks including a commitment to finance Nampak in the long term are underpinned by the turnaround strategy,” he said.
The planned capital raise was the third rights offer to be proposed by management in less than one year. The latest one managed to garner support from shareholders after management was able to strike a deal that saw lenders providing a revolving credit facility with favourable new terms.
The supplier of packaging for companies ranging from Coca-Cola to Tiger Brands has been battling to claw its way out of a R5bn debt hole it fell into during its ill-fated expansion elsewhere in Africa.
It is now gearing up for job cuts, pay freezes and a reduction in overtime as it battles a cash crunch that has eroded its share value for the past five years.
Nampak, which now boasts a R1.7bn market capitalisation after its rights issue, said more information on the debt refinancing will be provided on or about December 4 when its results for the year to end-September are expected.
M and G Investment Managers, on behalf of its clients, bumped up its shareholding in Nampak to 7.07% after the capital raise underwritten partly by Coronation.
Wellington increased its holdings in the group to 5.09% of the total issued ordinary shares of the company.
On Monday, the group also announced it had appointed Pitsi Josephine Mnisi as an independent nonexecutive director, member of the audit and risk committee and member of the social, ethics and transformation committee.
Nampak’s share price rose 1.42% on Monday to R215.
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