Nampak, Africa’s biggest packaging company, announced that it has sold its Nigerian paper packaging unit, as part of plan to shrink its portfolio and boost returns.
Nampak, a South African company based in Johannesburg, said the business which makes cartons for tobacco, food, and consumer goods industries, would be sold to privately-held Swedish cigarette pack maker AR Packaging for an undisclosed amount.
The Chief Executive Officer of Nampak, André de Ruyter said “we continue to rationalise the portfolio to improve returns on capital and reinforce our strategic intent. Proceeds from this disposal will further strengthen the company’s financial position”.
Nampak has retained its aluminum and tin canning products and services in Nigeria, Africa’s biggest economy. However, other South African companies have left the country over the last five years, citing regulatory issues and under performance. They include hotels group Sun International, and retailer Woolworths and consumer food maker Tiger Brands.
The country’s huge and expanding population of young people of working age has made Nigeria one of the top investment destinations on the continent.