Diversified Zimbabwe Stock Exchange (ZSE)-listed company TSL Limited says the acquisition of a 51,43 percent stake in Nampak Zimbabwe is on track for completion in the third quarter of this year.
The acquisition is part of the group's expansion drive into strategically aligned businesses.
In a trading update for the first quarter ended January 31 2025, group secretary Ms Fadzayi Pedzisayi highlighted that the group was currently engaged in obtaining the requisite approvals.
"The group's acquisition of a 51,43 percent stake in Nampak Zimbabwe is on track for completion in Q3 2025. The board is currently engaged in obtaining the requisite approvals for the acquisition," she said.
In addition, she noted that despite the challenging operating environment, the group would continue to pursue key strategic initiatives expected to enhance shareholder value.
In 2022, TSL announced that it had entered into negotiations for a potential acquisition transaction in a complementary business. Last year, the company made a US$25 million offer for a 51,43 percent stake in Nampak Zimbabwe.
The agriculture-focused company operates as a holding company, with operations in tobacco auctioning, printing and packaging, inputs supply, agriculture, storage, distribution and services.
The specific segments encompass logistics, agriculture, real estate and services, whilst Nampak Zimbabwe manufactures and markets packaging products, which include paper, plastic, and metal packaging.
During the period under review, group revenue for the first quarter was 9 percent below the comparative period in the prior year.
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Ms Pedzisayi noted that the delayed onset of the summer rains adversely affected the group's agriculture-based operations. Group profit was, however, significantly ahead of the previous year as a result of cost containment measures implemented towards the end of the 2024 financial year.
In preparation for the start of the tobacco selling season in the second quarter, Tobacco Sales Floor (TSF) maintained its decentralised floors in Karoi, Mvurwi and Marondera in addition to its Harare auction floor and increased the level of automation to meet the targeted volume throughput.
"Tobacco volumes are expected to surpass prior year. Propak's Q1 volumes were in line with budget and adequate hessian and paper stocks are available to meet market requirements for an increased tobacco crop," she said.
Agricura's first quarter revenue was 8 percent below the prior year, attributable to crop chemical volumes, which were negatively affected by the slow uptake by farmers owing to the delayed start to the 2024/25 rainy season.
"The improved rainfall patterns in January and February 2025 are expected to positively impact Agricura's second quarter performance".
On the other hand, revenue from animal remedies was more than treble the same period in the previous year as a result of the commissioning of the new animal health plant in November 2024.
