STIMULUS Investments Limited has concluded a transaction through which it purchased 25% equity in Plastic Packaging (Pty) Ltd and its related businesses.

Plastic Packaging is a Namibian company, and the only manufacturer of plastic bags and sheeting in the country.

In addition, it trades in and distributes various other packaging products throughout Namibia, South Africa and Angola via an extensive network of branches and outlets.
It also owns a plastics recycling plant in Okahandja and its shareholders have a 50% interest in a plastic bottling manufacturing plant in Windhoek, Polyoak Packaging Namibia.

Stimulus acquired its shareholding through a proportional sale of shares of the existing shareholders.  The transaction also allowed reconstitution of the shareholding with the exit of Servo Investments and Mr. Sidney Martin while Frankie Fredericks and Theo Saunderson became shareholders in their own right.

“The phenomenal growth and prospects of this Business, together with strong, hands-on management is what made this business attractive to Stimulus,” Monica Kalondo, the Managing Director of Stimulus Private Equity said.

She added that Plastic Packaging typifies the type of businesses that has the potential to enhance shareholder value for Stimulus’ investors and increase its dividend generating capacity.

“The new shareholding combination of Stimulus, Theo Saunderson (also a shareholder), management and myself culminates in synergies which are ideally geared towards enabling Plastic Packaging to remain the leader in its market segment,”  shareholder Frankie Fredericks said.

“The growth of the business has justified a wider shareholding base with more strategic skills and we are comfortable that Stimulus’ contribution will provide us with just that.
“It is also noteworthy that the Stimulus shareholding, together with our pre-transaction partners, catapults the black shareholding to 57.5%, all of which is unencumbered,” Managing Director of Plastic Packaging, Harry Erasmus, said.

The Board of Plastic Packaging further announced the appointment of Frank Fredericks as the new Chairman, who replaces Mr. Sidney Martin who exited as a shareholder and director of Plastic Packaging and all related companies.