South Africa’s biggest packaging company, Nampak, has sold its Nigerian paper packaging unit as part of plan to shrink its portfolio and boost returns, it said on Wednesday.
Nampak Chief Executive, André de Ruyter, said in Johannesburg that the unit, which makes cartons for tobacco, food, and consumer goods industries, would be sold to privately-held Swedish cigarette pack maker AR Packaging for an undisclosed amount.
“We continue to rationalise the portfolio to improve returns on capital and reinforce our strategic intent. Proceeds from this disposal will further strengthen the company’s financial position,” de Ruyter said.
Nampak has, however, retained its aluminum and tin canning products and services in Nigeria, Africa’s biggest economy.
Nigeria’s huge, expanding population of young people of working age has made the West African country one of the top investment destinations on the continent.