South African packaging company Nampak has announced plans to acquire Zimbabwe-based paper products manufacturer Hunyani.
The company plans to merge Hunyani with its two Zimbabwe businesses CarnaudMetalbox Zimbabwe and MegaPak Zimbabwe into one business entity named Nampak Zimbabwe.
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For the six months ending 30 April, Hunyani posted a $219 684 loss weighed down by a revenue drop. At that time, its revenues stood at $18.9m, down from $20.9m in 2013.
According to Hunyani, the deal needs to get approval from shareholders at an extraordinary general meeting.
MegaPak was founded in 1993 as a joint venture between Delta of Zimbabwe and Nampak. It offers technologies including injection moulding, stretch blow moulding, blow moulding and rotational moulding technologies. Delta owns 51% in MegaPak and Nampak 49%.
Plastic bottles manufacturer CarnaudMetalbox supplies metal cans, crowns and aerosols in Zimbabwe and can produce around three million food cans a month.
Nampak manufactures packaging for metal, glass, paper and plastic. It reported poor consumer demand and economic conditions in its Zimbabwe operations in its March financial results.
