Hunyani shareholders today approved the acquisition of CarnaudMetalbox (CMD) and MegaPak through the issue of 389 446 655 shares to the existing CMB and MegaPak shareholders. This comes after NamPak, a major shareholder in Hunyani expressed interest in expanding its investments in the packaging industry through consolidation of its Zimbabwe operations. NamPak owns 38,6 percent of Hunyani, 100 percent of CMB through NSAHL and 49 percent of MegaPak through Teklon BV while the difference of 51 percent is held by Delta.
In the approved transaction, Hunyani will offer 54 715 646 new Hunyani shares to NSAHL in exchange for its shares in CMB.
Hunyani will also offer 334 731 009 new shares to shareholders of MegaPak in exchange for 100 percent shareholding in MegaPak.
170 712 shares will be issued to Delta, while the difference of 164 018 194 new Hunyani shares will be issued to Teknol BV.
Speaking at the EGM, Hunyani chairman, Mr Kumbirai Katsande said the transaction will enable NamPak to inject much needed capital across its business units.
“NamPak believes that consolidation of its interests in Zimbabwe is the best method of undertaking this expansion.
“This will result in the creation of value for employees and shareholders, and enable it to inject much needed capital across its business units, facilitate a sustainable indigenisation structure and provide technological, management skills and expertise to its business,” he said.
Shareholders also approved an issue for cash to raise $2,6 million in new capital through the issue of up to 46 490 418 new ordinary shares in Hunyani to NamPak Holdings Limited (Mauritius) at $5,6c per Hunyani share.
The cash is expected to be utilised for enhanced working capital in the NamPak Zimbabwe operations.
The approval came after shareholders agreed to increase the authorised share capital to $1,5 million from $500 000 which also gives adequate provision for future expansion and working capital requirements of NamPak Zimbabwe.
The group is also set to receive a $10 million injection from NamPak. The group will now be headed by Mr John Van Gend, the current MD for CMB.
Shareholders also approved to change the name of the holding company from Hunyani Holdings Limited to NamPak Zimbabwe Limited.
NamPak now becomes a 51,4 percent shareholder of the entity, with Delta scooping a 22,6 percent stake of the company.
Mr Alan Harvey Howie, the finance director of NamPak and Mr Pearson Gowera, the chief executive of Delta were appointed to the Hunyani board as a way of reflecting the identity of the enlarged group. Speaking in an interview, Hunyani Holdings group managing director, Mr David Bain said the consolidation of operations will go a long way in cutting costs and overheads for the company.
“We are consolidating all of NamPak’s packaging interests in Zimbabwe, so there will be a lot of synergies in terms of common customer bases, there will be opportunities to take out costs and overheads and in general, it will position NamPak as the strongest packaging entity in Zimbabwe.
“This is a positive development for the country and company as well,” he said.