Nampak Ltd, Africa’s biggest packaging group, will sell its European paper business to Luxembourg’s Maximus Holdings for $103 million to pay down debt and shed underperforming units.
Nampak, which supplies plastic milk bottles to Britain and operates in several African countries, said it would sell the business to unlisted Maximus for a net $103 million.
Nampak has suffered from slack demand during the economic crisis in recent years, but has crafted a three-year turnaround plan that includes selling non-core assets and fixing underperforming units.
Nampak, which acquired the business in 2002, said the operations have delivered poor results ever since, with returns averaging 5,9% on net assets.
The business provides packaging for spirits, food, household products and pharmaceutical products.
Shares of Nampak were up 1,6% at R22,80 as of 0920 GMT, outpacing a 0,22% gain the JSE All-share index.