Nampak sells glass business for R1.5bn

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Sale to Isanti Glass 1 follows several years of financial underperformance

Nampak, Africa’s largest diversified packaging manufacturer, has sold its glass business to Isanti Glass 1, an entity made up of a black-owned investment company and a local subsidiary of beer maker AB InBev , for about R1.5bn.

In its 2018 annual report, Nampak said it had decided to dispose of the glass business “because its financial returns have failed to meet required levels due to inadequate skills, high expenditure and high fixed costs”. Nampak CEO André de Ruyter said the company would continue to rationalise its portfolio to improve returns on capital.

“It is not anticipated that the suspensive conditions will have been met before the Nampak 30 September 2019 year-end,” the company said.

 

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