Nampak Limited has recently finalized the process of share consolidation to pave the way for its proposed rights offer. The consolidation, which was approved by the necessary resolutions, will involve converting ordinary shares in a specific ratio and increasing the authorized share capital. This move is expected to streamline the company’s capital structure and facilitate its future growth plans.
Shareholders Embrace Nampak’s Share Consolidation Plan
Shareholders of Nampak Limited were informed of the share consolidation through a circular issued on 31 May 2023. The circular outlined the restructuring of Nampak’s ordinary authorized and issued share capital, proposing the consolidation of every 250 ordinary shares into 1 ordinary share. The objective of this consolidation was to facilitate the company’s proposed rights offer.
According to the announcement, all the requisite resolutions to approve and implement the consolidation were passed during a general meeting, and the Companies and Intellectual Property Commission (CIPC) accepted and filed the resolutions on 14 July 2023. As a result, Nampak will convert the shares from par value shares to no par value shares, consolidate and reduce the authorized and issued share capital in the ratio of 1 share for every 250 shares, and increase the authorized share capital from 3,107,428 to 600,000,000 shares.
Salient Dates and Times
Nampak has provided shareholders with a list of salient dates and times relevant to the share consolidation process, aiming to ensure a smooth transition for all stakeholders. These dates have been previously published in the circular, and they remain unchanged:
|Wednesday, 19 July 2023||Effective date of the conversion of the par value shares into no par value shares|
|Tuesday, 25 July 2023||Last day to trade under the present share capital to be recorded as a shareholder|
|Wednesday, 26 July 2023||Trading in consolidated shares under the new ISIN: ZAE000322095 begins, suspension of trading in shares on the old ISIN: ZAE000071676|
|Wednesday, 26 July 2023||Effective date of the increase in the authorized share capital|
|Thursday, 27 July 2023||Announcement released on SENS regarding cash payment for fractional entitlements|
|Friday, 28 July 2023||Record date to determine shareholders subject to the consolidation|
|Friday, 28 July 2023||Certificated shareholders must submit forms of surrender (yellow)|
|Monday, 31 July 2023||Dematerialized shareholders’ accounts updated to reflect the consolidation|
|Monday, 31 July 2023||Certificated shareholders’ accounts credited with their entitlement|
|Monday, 31 July 2023||Certificated shareholders’ entitlements credited to Computershare Nominees|
- All times are local times in South Africa on a 24-hour basis unless specified otherwise.
- Shares in the pre-consolidated form may not be dematerialized after the last day to trade prior to the consolidation, being Tuesday, 25 July 2023.
- Shares in the consolidated form may be dematerialized or rematerialized as from Monday, 31 July 2023.
What Does Share Consolidation Mean for Nampak?
The share consolidation represents a strategic move by Nampak to optimize its capital structure and position itself for future growth opportunities. By consolidating shares and increasing the authorized share capital, Nampak aims to strengthen its financial position and enhance shareholder value. The company’s management believes that the proposed rights offer, which will be made possible through the share consolidation, will provide Nampak with the necessary capital to pursue its expansion plans and invest in innovative packaging solutions.
As the consolidation becomes effective on 19 July 2023, shareholders should be aware of the changes in their shareholding structure. For every 250 ordinary shares they currently hold, shareholders will receive 1 consolidated ordinary share, and their entitlements will be reflected based on the consolidation ratio.
Shareholders Advised to Stay Informed
Nampak has advised its shareholders to stay informed and take note of the salient dates and times provided in the announcement. They should ensure that they are aware of the conversion of par value shares to no par value shares, as well as the suspension of trading in the old ISIN and commencement of trading in the new ISIN. It is crucial for shareholders to take the necessary steps to ensure their entitlements are credited correctly, especially regarding the surrender of documents of title for certificated shareholders.
In the coming days, Nampak will release an announcement on the Stock Exchange News Service (SENS) regarding the cash payment applicable to fractional entitlements resulting from the consolidation. Shareholders are advised to monitor SENS closely to receive this crucial information.
The share consolidation marks an important milestone for Nampak Limited, demonstrating the company’s commitment to its growth strategy and its dedication to providing value to its shareholders. With the support of its shareholders, Nampak is well-positioned to capitalize on new opportunities in the packaging industry.