Nampak concludes empowerment deal with Cambrian Capital Partners

Packaging group Nampak has entered into an empowerment transaction that will be implemented with a new private equity fund.

The company said in a statement on Thursday that the fund would be managed via the Nampak incubated private equity fund manager Cambrian Capital Partners.

“The transaction is poised to take Nampak into its next chapter in a sustainable and responsible manner and will be implemented with a newly established private equity fund,” it said.

Cambrian was founded by Tembinkosi Bonakele and Tembeka Ngcukaitobi. Bonakele is Cambrian’s MD and Ngcukaitobi is its non-executive chair. They brought more than 40 years of experience in the regulatory, commercial, competition and legal fields, Nampak said.

Cambrian participates in high-impact economic sectors, including manufacturing, green energies and services, through direct participation and partnerships to create sustainable employment and enable rural communities to participate in the mainstream of the economy.

“The board of directors of Nampak believes that the transaction provides a unique opportunity to be a catalyst for the development and empowerment of SA broad-based BEE private-equity opportunities,” it said.

Cambrian will be involved in managing the fund and building a capital base to support future empowerment investments and initiatives that would not have been feasible without this transaction.

Nampak Intermediate Holdings — the sole shareholder of Nampak Products — will acquire cumulative, non-participating, non-convertible, redeemable preference shares in Nampak Products, equal to its full market value.

The intragroup transaction will enable the fund to acquire Nampak Products ordinary shares at nominal value and without the need to raise acquisition funding and provide it with immediate ownership in the unit.

The fund will then subscribe for a 15% ordinary share interest in Nampak Products, while Nampak Intermediate Holdings will hold the remaining 85%.

Nampak Intermediate Holdings, as the limited partner to the fund, would provide committed capital of up to R12.5m over the life of the fund, it said.

The transaction does not require Nampak shareholder approval.

mackenziej@arena.africa