Johannesburg - Following the sale earlier this month of the Enstra Mill and recycled packaging business, Sappi announced on Tuesday it had sold its Cape Kraft recycled packaging paper mill to Golden Era.
The sale to Golden Era, the third largest printing and packaging company in South Africa, came after Sappi received “many expressions of interest” in a closed tender process. The total amount Sappi will receive for the Cape Kraft and Enstra mills is just short of R600 million.
Sappi Southern Africa CE Alex Thiel said: “The sale of the Cape Kraft and Enstra mills and the recycled packaging paper business is in line with Sappi Southern Africa’s strategy to unlock value from non-core assets and free up resources for investment in dissolving wood pulp, virgin containerboard and other new business opportunities.
“The sales also support the Sappi Limited strategy to strengthen the group’s balance sheet and focus on high-growth opportunities.”
Golden Era CE Kishor Chhita said the acquisition would “strengthen our position in the market as a service-oriented company that offers packaging solutions and will further help us to achieve our goal of creating lasting team-based partnerships with our customers.”
The transaction is expected to be concluded in September.