Nampak’s shares leapt nearly 11% yesterday after the packaging firm appointed three directors to its board to help navigate the debt-laden firm out of troubled financial waters.
Shareholders were advised that the board of Nampak had appointed three new directors, with effect from March 15: Tjaart Kruger, Phildon Roux and André van der Veen.
The appointments were also hailed yesterday as a victory for shareholder activism. This after shareholders, representing roughly 40% shareholding in the group, over the past few months have pushed for a board shake-up amid unhappiness at the company’s direction.
These Three Musketeers are perceived as the right hands for the job to turn the firm’s fortunes around. As a result, the shares rose to an intraday high of R1.03, basically getting a high five from happy market investors. This as the firm’s shares are down 75.97% in the year, leaving it with a very reduced market value of R649 million.
Nampak’s management wants to hold a R1.5 billion rights offer, a controversial move. This as the company’s net debt burden at R5.243bn at September 30, 2022 was 7.8 times the value of the company.
Nampak yesterday said it appointed Tjaart Kruger as an independent non-executive director and member of the Audit and Risk Committee.
Kruger is a CA (SA) with a PMD from Harvard Business School. He has extensive executive and leadership experience at leading organisations including Country Bird, Tiger Brands, Afrox and Premier FMCG, where he fulfilled the role of CEO. Kruger is currently non-executive director of First Food Brands Group.
Also appointed was Phildon Martin Roux as an independent non-executive director and member of the Nominations and Remuneration Committee.
“Mr Roux has 32 years’ experience in the FMCG (fast moving consumer goods section) sector, having held numerous executive positions inclusive of CEO, executive and non-executive directorships. As the CEO of Adcorp, he was instrumental in the turnaround of the organisation. He holds a BCom (Hons) and an MBA and currently acts as a strategic adviser,” he said.
André van der Veen was appointed as a non-executive director. Van der Veen is a CA (SA), CGMA and CFA charter holder. He has served as a director of numerous listed companies and was the CEO of Johnnic Holdings, KWV Holdings, Niveus Investments and eMedia Holdings Limited, the parent company of e.tv.
As a partner at A2 Investment Partners, Van der Veen has invested in and been appointed as a director of Novus Holdings and York Timber Holdings. He is also the chairman of Alphawave Holdings, a specialised technology holding company.
Nampak said A2 Investment Partners was a shareholder of the company.
“The board welcomes Messrs Kruger, Roux and Van der Veen and looks forward to working with them and benefiting from their insights which they will bring to board discussions as a result of their extensive experience,” Nampak said.
Chris Logan, CEO at Opportune Investments, said yesterday: “This is a major step forward for Nampak. These are quality appointments. Although the appointments were made at a minute to midnight, better later than never.”
He also said it was a encouraging to see shareholders in action and getting their voices heard in South Africa.
Earlier this month Nampak again delayed its general meeting to get its debt ducks in a row, saying that more details would only be likely at its interim results.
This was done to allow the board and management to progress discussions with various stakeholders, including all group lenders and shareholders, relating to, among other items, a review of the group’s optimal capital structure and the size of the required rights offer.
Earlier this month, Nampak said Metis Strategic Advisers and the debt advisers appointed by the lenders had indicated that they would require more time before discussions and negotiations to agree that the new funding package could commence.
BUSINESS REPORT