Nampak, the debt-burdened, biggest packaging group in Africa, after a long delay has announced its general meeting will be held on June 30 – a pivotal meeting in which the management needs its shareholders to back its rights offer.
The announcement comes after it reported last week a R342 million headline loss for the six months to March 31 and pitched a much-reduced R1 billion rights offer proposal to shareholders, from R1.5bn previously.
The company has recently seen changes to the executive team and its board amid shareholder activism in efforts to right the troubled company.
Nampak is seeking all relevant authorisations required to enable the company to proceed with a rights offer to raise gross proceeds of up to R1bn during the course of the third quarter of 2023 which, if successful, would enable the management to further reduce the company’s debt and allow the management the opportunity to focus on delivering its strategy.
“Shareholders are reminded that negotiations to conclude credit-approved term sheets for the refinancing package for the next five years will continue over the next two months.
“These negotiations, together with the group’s progress in terms of the implementation of the restructuring plan, will determine the size of the required rights offer, which will be announced in due course as part of Nampak’s ongoing shareholder updates,” it said.
To give effect to the proposed rights offer, Nampak needs its shareholders to approve the proposed conversion of all of the Nampak shares from par value to no par value shares and the restructure of its share capital by consolidating and reducing the authorised ordinary shares from 776 857 200 shares to 3 107 428 shares by the consolidation of every 250 shares into one share, among other measures.
BUSINESS REPORT