BILLIONS IN NIGERIA, ANGOLA
Nampak averts rights issue while restricted cash grows
CEO Andre de Ruyter says the sale and leaseback of 15 industrial properties raised R1.744bn and reduced gearing
Packaging giant Nampak, which has about R2bn of restricted cash locked up in Nigeria and Angola, has placated investor fears that a rights issue could be in the offing. Speaking at the annual general meeting on Wednesday, CEO Andre de Ruyter said the sale and leaseback of 15 industrial properties in June 2016 had raised R1.744bn and pushed gearing below 50%. "This transaction was instrumental in avoiding a rights issue at this stage. We don’t anticipate that this is a significant risk to be concerned about...." Shareholder activist Chris Logan raised concerns over the pile of restricted cash, which grew from R700m in financial 2015 to R2bn in 2016. "This will continue to grow a lot more, perhaps to as much as R3bn by the end of this financial year." De Ruyter said the growth in the restricted cash pile in Angola and Nigeria indicated significant profitability in the businesses in those countries. "If that cash pile started shrinking there would be even greater cause for concern." Na...
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