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NAMPAK - ANNOUNCEMENT

Release Date: 01/12/1998 12:44
Code(s): NPK NPKPNPP1
Wrap Text
NAMPAK LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 68/08070/06)
("NAMPAK")
ANNOUNCEMENT

SUBJECT TO THE FULFILMENT OF CERTAIN SUSPENSIVE CONDITIONS, NAMPAK HAS ACQUIRED THE TISSUE WADDING AND TISSUE PRODUCTS BUSINESSES OF SWAZI PAPER MILLS LTD, NATIONAL TISSUE (PTY) LTD AND PAARL PAPER MILLS (PTY) LTD FOR A CASH
CONSIDERATION. THE ACQUIRED BUSINESSES WILL BE INTEGRATED INTO NAMPAK'S TISSUE DIVISION.
IN ADDITION, AN AGREEMENT IN PRINCIPLE HAS BEEN REACHED BETWEEN DYNAMO INVESTMENTS LTD ("DYNAMO") AND NAMPAK IN TERMS OF WHICH DYNAMO WILL SELL CERTAIN OF ITS TISSUE BUSINESS ASSETS TO A NEW UNLISTED VEHICLE TO WHICH NAMPAK WILL IN TURN SELL ITS TISSUE DIVISION. NAMPAK WILL HAVE CONTROL OF THE NEW VEHICLE IN WHICH DYNAMO WILL HAVE A MEANINGFUL SHAREHOLDING. A FURTHER ANNOUNCEMENT WILL BE MADE ONCE A FINAL BINDING AGREEMENT ON THIS VENTURE HAS BEEN REACHED.
THE TURNOVER OF THE COMBINED BUSINESSES AFTER BOTH TRANSACTIONS WILL BE APPROXIMATELY R800M PER ANNUM.
THE COMPETITION BOARD HAS ADVISED THE PARTIES TO EACH TRANSACTION THAT IT DOES NOT PROPOSE INVESTIGATING THE ABOVE TRANSACTIONS WHICH ARE UNLIKELY TO HAVE A MATERIAL EFFECT ON THE COMPANY'S EARNINGS PER SHARE. SANDTON 1 DECEMBER 1998

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