Tsl has disposed of its 16 percent stake in Nampak to Old Mutual Asset Management in a transaction worth close to $15 million. The disposal of 124,9 million shares went through at 12 cents on the Zimbabwe Stock Exchange today.
The stake was valued at $10 million in 2017, up from a $6,9 million valuation in 2016.
Chairman Antony Mandiwanza confirmed the transaction and said that the proceeds will go towards various capital projects in particular the real estate business “where Vostermans in particular is thirsty for capital.”
Management also seemed bullish as they expand their investment into warehousing space. The anticipation is that there will be an increase in demand which should justify expanding into a segment where occupancy levels have been low.
At its most recent trading update, the group said it had completed Phase 1 of Vostermans development and has now embarked on Phase 2. It also added that plans are underway to upgrade key properties.
The investment, together with Cut Rag, had been held as available for sale since 2014.
TSL was founded in 1957 as an auction house for tobacco, and in the late 1960s began to diversify into logistics and agronomy and held significant stakes in Chemco and the then Hunyani Holdings (now Nampak). After the merger of Nampak South Africa operations in Zimbabwe, TSL’s stake was diluted to 16.53 percent from 39.1 percent.
Old Mutual on the other hand could be making use of ‘swipe dollars’after it recently reported that it was sitting on just over $120 million in RTGS balances. The acquisition takes its stake in the group to about 20 percent