eBusiness Weekly
Fradreck Gorwe
Zimbabwe Stock Exchange-listed packaging company, Nampak Zimbabwe Limited (NPKZ.zw), has a long history that stretches back to the establishment of Hunyani Holdings Limited in 1951 and its subsequent listing on the Zimbabwe Stock Exchange (then Rhodesia Stock Exchange) in 1952.
The company engages in the manufacturing of paper, plastic and metal packaging products.
The journey to Nampak Zimbabwe began when Nampak South Africa partnered the company as a mere technical partner providing invaluable advice on all major acquisitions of equipment.
Initially Hunyani Holdings Limited operated through two 100 percent owned subsidiaries, Hunyani Paper and Packaging (1997) Limited, Hunyani Agri-Forestry Limited and an associate, Softex Tissue Products.
In 1995, TSL Limited acquired a controlling stake in Hunyani Holdings, thereby effecting a change in trading year end from 30 September to 31 October to coincide with the former’s.
In 1996, the group announced its intention to acquire the entire issued share capital of FP Holdings Limited in a move to increase Hunyani’s product range and provide cost saving opportunities when operations are combined. It also had acquired assets and liabilities of Print Holdings from TSL Limited to strengthen the group’s position in the folding carton and label markets, and also to rationalise the printing activities of the TSL group.
By 1997 Technifax Private Limited was added as another 100 percent owned subsidiary for Hunyani Holdings and an agent for the distribution of liquid packaging cartons for traditional beer.
The acquisition of FP Holdings was concluded in January 1997. The acquisition resulted in an increase in the group’s property portfolio and plans ensued to restructure the group by creating two separate businesses for manufacturing and property holding operations.
The restructuring took effect in September 1997 and another subsidiaries Hunyani Properties Limited and UniPak Limited were formed. The number of subsidiaries as a result increased to six.
In August 1998, Nampak Holdings Limited increased its shareholding in Hunyani to 34,3 percent after a resolution was made that authorised the directors to place 97,5 million shares with the former for a consideration of $183,6 million. This put the company on a positive cash position.
By the year 2009 operations were pigeonholed into four major divisions, the Printopak Division, Corrugated Products Division, Flexible Products Division and Forests Division. Nampak and TSL were still the group’s two major shareholders that anchored operations via technical support.
The group commenced refurbishment and restructuring projects in 2010.
In 2013, the group disposed of its shareholding in National Waste Collections and in Dumatau Trading Limited, its Botswana Waste Operation. The Marondera Treatment Plant was leased to a third party.
Trading under the Nampak Zimbabwe banner started in 2015. The name change from Hunyani Holdongs Limited to Nampak Zimbabwe followed the resolutions of an annual general meeting held on 21 August 2014. The name change was duly approved by the Registrar of Companies.
Shareholders had also resolved to acquire the entire share capital of CarnaudMetalbox Zimbabwe (CMB) and Mega Pak Zimbabwe in exchange for the issuance of new shares in Hunyani both companies’ respective shareholders. Mega Pak was founded in 1993 as a joint venture between Delta Corporate Zimbabwe and Nampak South Africa.
Pursuant to the acquisitions, Nampak Zimbabwe effectively took over Hunyani Holdings’ stock exchange listing. Nampak Limited (the holding company with businesses in South Africa, Angola and the United Kingdom), also controlled 51,43 percent of the Zimbabwean subsidiary following the acquisitions.
Following the rationalisation exercise that preceded the renaming of the group and subsequent acquisitions, trading updates now take cognizance of three major operations, Hunyani Paper and Packaging, CMB and Mega Pak.
Present focus is directed on growth and market expansion.
As updated on January 27, 2020, the company holds a market capitalisation of $559 179 595 and a share Price of 74,00 cents.
Erik Smuts is the current chief executive officer.
