RBH holds 20% of Astrapak, South Africa’s largest plastic packaging group.
Listing: JSE:APK
Astrapak is a focused group of companies specialising in the production and supply of plastic packaging materials. It currently employs more than 3 000 people and operates nationally through three divisions, namely Films, Rigids and Flexibles. These businesses supply specialised plastic packaging to the food, beverage, confectionery, fruit, petrochemical, industrial and general merchandise markets. The operations are focused in specific areas from high-volume low-cost producers to high-tech specialised companies.
Commentary on the transaction with RBH
Source: Astrapak website
Royal Bafokeng Finance (RBF) CEO Niall Carroll: “We chose Astrapak because it is positioned in the fastest growing segment of the packaging market, that is plastics, and because of its exposure to the consumer goods market, which is undergoing a boom.
“As we have grown closer to the business, so our confidence in Astrapak management’s ability to add value for shareholders has grown. RBN regards Astrapak as a core, long term investment and we are therefore extremely pleased to have the opportunity to increase our stake to 20%.”
Astrapak CEO Ray Crewe-Browne: “This deal gave us an immediate injection of cash and a broad-based empowerment partner with substantial financial resources. Because both components of the deal were settled in cash, we avoided many of the pitfalls associated with vendor-financed deals, which are often funded out of future earnings.”
