JSE-listed packaging group Nampak has, through its Nampak Products subsidiary, entered into a sale of equipment agreement with fellow packaging and paper company Mpact’s indirect subsidiary Mpact Plastic Containers Castleview (Mpact PCC).
Nampak has been winding down and closing its crates manufacturing business and intends to sell equipment that is no longer used.
Nampak has been actively optimising its portfolio and reducing interest-bearing debt, which it intends to do with the disposal proceeds.
The equipment in question will be sold for R40-million and is located at Nampak sites in Olifantsfontein, Gauteng; Pinetown, KwaZulu-Natal; and Epping, in the Western Cape.
The equipment for sale mainly comprises injection moulding and recycling equipment, ancillary equipment and spares.
Since the book value of the equipment is R4.5-million, the profit on the disposal of the equipment amounts to R35.5-million.
Mpact PCC will pay the consideration in three tranches, the first of which will comprise 50% of the consideration upon delivery of the equipment. The second and third tranches will comprise 25% of the consideration, respectively.