JSE-listed packaging group Nampak has received formal approval in respect of the R1-billion rights offer circular to be published on or around Monday, September 4.
The subscription price of R175 a share represents a discount of about 23.49% to the 30-day volume-weighted average traded price of Nampak’s ordinary shares at close of business on August 30.
"Nampak has received commitments from certain of its major shareholders to follow their rights in terms of the rights offer and subscribe for rights offer shares to the value of approximately R500-million.
"Nampak has furthermore received commitments from Coronation Asset Management up to a maximum of R300-million, A2 Investment Partners up to a maximum of R100-million and Numus Capital up to a maximum of R50-million to partially underwrite the rights offer.
"Accordingly, the offer is underwritten by the underwriters for a maximum value of R450-million," it said.
Nampak says its directors have confirmed that the underwriters are able to meet their commitments in terms of the rights offer. The board has considered a number of precedent rights offers on the JSE since 2014 and is of the opinion that, taking into account all relevant circumstances, the underwriting fees payable to the underwriters are market-related, it said in a statement.
OPERATIONAL UPDATE
There has been a step change in corporate activity since Nampak presented its interim results.
"Numerous concurrent workstreams to reposition, refinance and rightsize the business have either been finalised or are at advanced stages of implementation," it said on August 31.
"Good progress has been made in respect of the asset disposal programme and we remain confident that the R2.6-billion target will be realised, with a critical focus on high value assets," the company said.
Further, the merger of Bevcan South Africa and DivFood is progressing according to plan, having appointed the leadership team in pursuance of best practice. DivFood has delivered a return to profitability over the past four months, which is particularly pleasing as turnaround initiatives gain traction.
"Management initiatives to reduce working capital through renegotiated terms and reduced inventory levels are yielding positive results, and capital expenditure is being actively managed and is expected to be in line with previous guidance," Nampak added.
"Additionally, following the sustained currency volatility within Nigeria and, to a lesser extent, Angola, management has implemented mechanisms to mitigate the severity thereof. With respect to Nigeria, it is clear that the government has taken the correct policy action, but it is likely to take some time for trading conditions to normalise," it added.