What’s all this then? Nampak have gone and flogged their Flexibles division to the bleeding Aussies, that’s what! Australian packaging giant Amcor will cough up somewhere between R250 and R300 bar, we’re told. Nampak Flexibles turns over about R1.1 billion a year at its three plants, and numbers among its blue chip clients such luminaries as Unilever, Mars, Simba, Tastic and Tiger Brands Ltd, and gives its new owner a coveted toehold on the African continent, with its limitless growth opportunities. Funnily enough, that’s Nampak’s thinking too: by shedding some of their lower-margin assets (Flexibles was bring in 3 to 4%), they feel they’ll be able to spend a bit of wedge on the higher-margin opportunities north of our borders, notably in Nigeria, Ethiopia, Kenya and Angola, where 18-20% is considered a more reasonable return. They’re also, by the by, selling their corrugated and tissue divisions and Nampak Recycling, in separate transactions.
Comment: Much as we dislike their cricketers, we value the Australians for their dollar, and their heartening confidence in our economy.