Remgro to sell stake in Nampak

Investment firm Remgro said yesterday it would sell its entire stake in packaging manufacturer Nampak, a deal that could be worth about $192-million.

Shares of Nampak tumbled more than 6% on the news.

Remgro, which has stakes in financial services, media and healthcare companies, said it wants to sell its 11,8% holding in Nampak after deciding it was a non-core asset.

Remgro said in a statement it aims to sell its 78.1million shares in the packaging company through an accelerated book-build to institutional investors.

One analyst said Remgro likely wanted to cash out of its stake after a strong performance in Nampak's share price so far this year.

"It's probably profit-taking from Remgro, given the fact that Nampak's share price has increased by 20% year-to-date." The analyst declined to be identified because he is not allowed to speak to the media.

Nampak said last month it expects full-year earnings to rise by much as 90%, helped by an improvement in its corrugated division and its UK cartons business.