Nampak acquires Can Manufacturers from BDC
Brian Benza | Friday November 11, 2016 18:00
Can Manufacturers produces and supplies a range of cans for packaging of food items.
In a notice released this week, the Competition Authority says it has received a merger notification for a proposed disposal of all the manufacturing assets of Can Manufacturers to Nampak Products Ltd and a yet to be formed Special Purpose Vehicle (Newco).
Newco will be jointly controlled by BDC Limited and Nampak Limited.
Nampak produces and exports rectangular cans and lids, and large round cans from South Africa into Botswana. Some of the top shareholders of Nampak Limited are Allan Gray Investment Council, South African Government Employee’s Pension Fund, Lazard Asset Management LLPC Group, Somerset Capital Management and Visio Capital Management.
Can Manufacturers, which is located in Lobatse, was opened in 2008 at a total investment cost of P126 million.
The sale to Nampak is seen as part of BDC plans where it is divesting from certain sectors while investing in new ones through joint ventures or Greenfield investments.
BDC plans to pump P4.5 billion into several new projects, creating 3,500 direct and indirect jobs, under an ambitious new strategy.
The new 2014-2019 strategy, the corporation says, is aimed at supporting the growth and sustenance of key industries whilst stimulating emerging sectors “to the extent that they are aligned to national goals and priorities”.
Targeted sectors include infrastructure and industrial property (P1.5bn), emerging and key industries (P975m), other services (P730m), financial services (P420m), education (P248m) and agri-processing (P180m).
About P1 billion is required in the short-term for several of these projects, which, as revealed by this publication, include investments into Letshego, Ba Isago, Milk Africa, a private estate in Francistown and a paper project.
BDC says it plans to finance the broader investment strategy through a mixture of domestic borrowings, funding from development finance institutions such as the AfDB and the proceeds of the divestment from projects.
Other options include additional capital injection from government and addition of a strategic equity partner.