Picture: BLOOMBERG/SUMIT DAYAL
Picture: BLOOMBERG/SUMIT DAYAL

Packaging manufacturer Nampak said on Thursday it had received R1.5bn in proceeds from the sale of its glass business on schedule, having recently relaxed debt covenants with lenders partially due to the risk of a delay.

The group said on Monday its net debt-to-earnings before interest, taxation, depreciation and amortisation (ebitda) has been relaxed to 3.5 times from three times with effect for its six months to end-March, due to the threat of a weaker rand and delays from proceeds from recent sales of assets.

Nampak said in September that it had agreed to sell its glass business to Isanti Glass 1, an entity made up of a black-owned investment company and a local subsidiary of beer maker AB InBev, for about R1.5bn. The proceeds were received on Tuesday, the group said.

The group had about R5.7bn in net borrowings as of its year to end-September, and is using recent sales to focus on its dollar-denominated debt, payments of which are under threat from a weaker rand.

The group’s debt levels compare unfavourably with its market capitalisation of R779m as of Thursday morning. The group’s share price has fallen 83.46% so far in 2020, while the JSE has lost 23.39%.

gernetzkyk@businesslive.co.za

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