JSE-listed Nampak will sell its Nampak Glass business to Isanti Glass 1, a joint venture between Kwande Capital and Sabsa Holdings, for R1.5-billion in cash.
The disposal is in line with Nampak’s active portfolio optimisation strategy and will allow it to focus on the balance of its portfolio and to reduce its interest-bearing debt.
The buyer is currently 60% owned by Kwande and 40% owned by Sabsa.
Black-owned and -managed investment company Kwande holds a 60% interest in Isanti, with Sabsa – the holding company of South African Breweries – owning the balance.
Nampak Glass is one of two primary glass container manufacturers that service the glass container industry in South Africa and has been in operation since 1984.
The business supplies many of the key players in the South African food and beverage industry.
Nampak Glass operates three furnaces, which supply nine forming lines at its site in Roodekop, south-east of Johannesburg, Gauteng, and operates its own cullet sorting and processing plant on the property.