Nampak is to sell its glass business for RS 1.5 billion (US$99.1 million) to Isanti Glass 1.
Isanti Glass 1 is 60% owned by Kwande Capital and 40% owned by an AB InBev subsidiary, South African Breweries (SABSA).
Kwande Capital is an investment company established in 2010, with a focus on investing in companies with high growth potential in the manufacturing, oil and gas sectors.
Nampak’s glass business is one of only two container glass manufacturers in South Africa and has an estimated market share of 25%.
It operates three furnaces which supply nine forming lines at its site in Gauteng, Roodekop, southeast of Johannesburg, South Africa. It also operates its own cullet sorting and processing plant on site.
Nampak has been in the glass manufacturing business since 1984.
Nampack CEO, Andre de Ruyter, said the sale of the proceeds would be used to reduce its debt.
The sale is subject to the fulfilment of various conditions and is subject to approval of the South African competition authorities.
Pictured: Nampk Glass operates nine forming lines from its site near Johannesburg, South Africa.