By:Staff Writer
Daikon Investments (Pty) Ltd has obtained a 55.2% controlling share of Namibia Plastics & Packaging Distributors (Pty) Ltd from Johan Struwig, Co-Founder and CEO of Namibia Plastics.
The closing for the transfer of shares held in Namibia Plastics to Daikon was completed on 30 January 2023 following the Namibian Competition Commission’s approval of the merger on 29 September 2022.
The 44.8% co-shareholder in Namibia Plastics is Spitz Capital, a regulation 13 Unlisted Investment Vehicle with the Government Institutions Pension Fund (GIPF) as the principal investor.
Spitz Capital is managed by Königstein Capital, a Namibian investment manager established in 2009 by Albie Basson.
Daikon director, Andrea Barry welcomed the merger.
“We are excited to finalise this transaction which is a reflection of our desire to strengthen the industrial base of the country through export-oriented growth,” Barrysaid.
Barry added that together with its co-shareholder, Spitz Capital, they have injected further capital of N$80 million ahead of the closure of the deal to double production capacity and enable the business to increase its presence across the region, moving from a 60% export ratio to 80% over the coming years.
“The future of the business holds not only further expansion, but also the realisation of our ambition to create a circular economy for plastics.”
The company has already doubled its output with the arrival of a second extrusion line from Europe in early November 2022.
Johan Struwig, Co-Founder and CEO of Namibia Plastics said for the past eight years, Namibia Plastics’ purpose and corporate mission has been to become the market leader everywhere it serves.
He said this acquisition brings them one step closer to achieving this goal as it opens the doors to several opportunities in both the domestic and international arena.
“In addition to the second production line, further capex expansions have been approved by the shareholders, which include the establishment of an in-house recycling plant to recycle post-production waste. This material can be reintroduced into the manufacturing cycle, reducing the use of ‘virgin plastic material’ and allowing the same amount of plastic to be used multiple times in various applications. The benefit for the environment is that the amount of plastic produced annually is reduced,” Struwigsaid.
Struwig went on to say that although Windhoek is not experiencing power supply problems like South-African cities, and the facility can consistently deliver on high-quality output, it is also in the process of implementing a solar system for maximising the city’s sunny conditions.
At the same time, he announced that more than 10% of the proceeds of the sale of his shareholding in the company is in the process of being redistributed to the people of Namibia Plastics to recognise their commitment to owning, supporting, and driving the company’s strategies and ensuring its future success.
“We will continue nurturing our slogan, ‘Beyond Success to Significance’, which is built on the pursuit of finding value, meaning and purpose in serving and making a difference in the lives of others”, Struwigconcluded.
Daikon Investments Acquires Namibia Plastics And Packaging Distributors
