Nampak Limited - Nampak Concludes R1 Billion Broad-Based Bee Deal

Nampak Limited - Nampak Concludes R1 Billion Broad-Based Bee Deal               
Nampak Limited                                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1968/008070/06)                                            
JSE code: NPK        ISIN number: ZAE000004933                                  
("Nampak" or "the Company")                                                     
PRESS RELEASE                                                                   
NAMPAK CONCLUDES R1 BILLION BROAD-BASED BEE DEAL                                
A black economic empowerment (BEE) transaction, valued at nearly R1 billion and 
benefiting employees and broad-based groups, has been concluded by Africa"s     
largest packaging company, Nampak.                                              
Unveiled by Nampak"s Chief Executive Officer (CEO), John Bortolan, the          
transaction, which is a landmark for the manufacturing sector, involves 10% of  
the company"s equity, distributed between Nampak"s 10,200 permanent South       
African employees and a broad-based BEE consortium that includes two trade      
unions, a women"s group, as well as a leading black empowerment company.        
The deal comprises three separate components, namely:                           
Nampak Employee Share Trust                                                     
The Nampak Employee Share Trust (NEST) will benefit every one of Nampak"s 10,200
South African employees, who are not beneficiaries of the company"s existing    
share incentive scheme and who will not benefit elsewhere as beneficiaries of   
the BEE transaction.                                                            
These employees will receive approximately 550 ordinary shares each, with a     
current market value of R8,321.  As shareholders, voting rights will vest       
immediately, although they will not be able to dispose of their shares until 31 
December 2010.                                                                  
The shares have a market value of approximately R85 million.                    
Black Management Trust                                                          
The Black Management Trust (BMT) will benefit Nampak"s black South African      
management.  Initially the trust will benefit approximately 480 employees; this 
number will increase over time.                                                 
Nampak will fund the shares provided to the BMT by means of a capital           
contribution of R413 million.  Employees will be required to retain their shares
for 10-years.                                                                   
Together, the NEST and the BMT represent 5% of Nampak.                          
Broad-based BEE consortium                                                      
This newly created entity will hold 5% of Nampak"s shares and consists of:      
1. Aka Capital (Pty) Ltd, a black private equity and investment holding group   
headed by Reuel Khoza (chairman), Sam Nematswerani (CEO) and Gary Morolo        
(executive director).  The company will hold 56% of the above shares.           
2. Two trade unions, closely associated with Nampak, will acquire a further 28%.
They are the Chemical, Energy, Paper, Printing, Wood & Allied Workers Union     
(CEPPWAWU) and the South African Typographical Union (SATU).                    
3. Women are represented through the National African Women"s Alliance (NAWA),  
which will have a 10% stake in the consortium.                                  
4. Nampak has invited its two incumbent black non-executive directors, namely   
Keith Mokoape and Lot Ndlovu to participate in their personal capacities.  Each 
will hold 2%.                                                                   
The balance of shares will be retained for future use.                          
Reuel Khoza has accepted an invitation from Nampak to join the company"s Board  
of Directors, subject to shareholders approval.                                 
While this deal is the largest BEE transaction facilitated by Nampak to date, it
is not the company"s first.                                                     
Nampak has long recognised the importance of economic upliftment and opportunity
creation for the majority of South Africans, who were denied access to          
participate fully in the formal sector.  To this end, the company has concluded 
a number of BEE deals since the beginning of the 1990"s, among them NamITech,   
Peters Papers, Disaki and other smaller deals.  Nampak was also one of the first
listed companies to adopt and publish its own BEE Charter in May 2004.          
For John Bortolan this transaction represents a pivotal point in Nampak"s       
history.                                                                        
"We have spent considerable time and effort consulting with various interest    
groups to develop the best broad-based deal. When we set out to define the      
composition of the company"s BEE equity profile, we were guided by the need for 
transformation that placed meaningful participation in the hands of our         
employees and broad-based groups that represent the millions of consumers who   
use our products every day.                                                     
NEST and the BMT make our employees real partners in the business.  Everyone    
will derive the benefits of their hard work and commitment to this great company
of ours.                                                                        
At the same time, our new partners bring a fresh perspective to Nampak.  The    
partners we have in Aka Capital specifically are well-known businessmen, who are
widely respected for their abilities to drive growth and achieve tangible       
results.                                                                        
Equally important is the fact that Nampak is now more aligned to the national   
interest."                                                                      
The deal is expected to enhance Nampak"s competitive edge as increasing numbers 
of customers demand first-class BEE suppliers.                                  
Johannesburg                                                                    
Thursday 18 August 2005                                                         
Date: 18/08/2005 05:10:08 PM Supplied by www.sharenet.co.za                     
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