ZIMBABWE – Delta Corporation (Delta)’s chief executive Pearson Gowero has been appointed to Nampak Zimbabwe Limited (Nampak Zim) board following the merger of Hunyani, CarnaudMetalbox and MegaPak.
This comes as South Africa-based packaging group Nampak Holdings (Nampak) wholly-acquired the Zimbabwe Stock Exchange-listed Hunyani and merged it with two other local units in a share swap deal.
Nampak’s group finance director Alan Harvey Howie has also been appointed to the board.
The Johannesburg Securities Exchange-listed merged Hunyani with dormant CarnaudMetalbox and MegaPak, in which it held a 49 percent stake. Delta held the other 51 percent in MegaPak.
The deal necessitated the name change of the consolidated group to Nampak Zim.
Two years ago, the company announced the disposal of its Botswana waste collections unit following the closure of the firm’s paper mill which had been under care and maintenance.
Meanwhile, Nampak is set to inject $10 million into Hunyani over the next 12 months, according to incoming Nampak Zimbabwe’s group chief executive John Van Gend.
The group, which has invested about $20 million into its Zimbabwean businesses over the past five years, will put in $3 million in working capital upon conclusion of the merger.
For the half year ending April 2014, Hunyani recorded a $219 000 loss after tax, while it recorded a profit of $407 000 prior year comparative. The group retrenched over 80 percent of its employees due to the harsh economic environment in Zimbabwe.
Two years ago the company announced the disposal of its Botswana waste collections unit following the closure of the firm’s paper mill which had been under care and maintenance.
Incorporated in Zimbabwe in 1951, and listed on the ZSE in 1952, Hunyani has traditionally been a financially secure company due to Nampak’s investment.
A manufacturer of a wide range of packaging products at specialist operations situated throughout Zimbabwe, the group’s diverse range of products includes folding and corrugated cartons, flexible packaging, sacks, bags and labels.
According to Nampak, the three companies deconsolidated in 2007 as Nampak had lost control due to the threat of indigenisation, price controls and restrictions on the repatriation of funds from these entities to their holding companies outside Zimbabwe.