Nampak makes progress with glass disposal


Nampak makes progress with glass disposal

Published Date: 2019-07-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Nampak makes progress with glass disposal

The packaging group says it and the prospective buyer are fully committed to concluding the transaction.

Nampak says it's made significant progress in talks to sell its Glass business, without giving any further details.

Despite investment in the division, which has resulted in a turnaround in its performance, the packaging group is pushing ahead with its sale due to the significant capital it will continue to require. It previously said the money would be better spent elsewhere in its operations. While it had expected to wrap up a deal by the end of March, it said the process had taken longer than expected due to the complexities of the transaction. When it reported its interim results in May, it said a majority black-owned business, backed by an international corporation with expertise in the sector, had secured funding to buy the unit.

The group didn't pay an interim dividend for the six months to end-March, saying it had decided keep dividend payments on hold pending the sale of the Glass business and until it was assured of the sustainability of cash transfers from its operations in Zimbabwe.

Its shares closed 0.6% higher at R10.96 yesterday.

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