Jun 20 2006
Consol agrees to dispose of its Plastform and Flexibles Plastics businesses
1. Introduction
Standard Bank is authorised to announce that Consol has agreed to dispose of the rigid thermo formed container (“Plastform”) and the flexible packaging (“Flexibles”) divisions of its plastics business.
2. Rationale
Consol’s strategic review of its plastics operations led it to conclude that the Plastform and Flexibles operations did not meet Consol’s investment criteria. Consol therefore decided to dispose of these operations. The cash proceeds from the disposals of Plastform and Flexibles will be applied to Consol’s general corporate purposes.
3. The Plastform disposal
Consol has agreed to dispose of the assets of Plastform as a going concern to Astrapak Limited. The Plastform disposal, which is not categorised in terms of the Listings Requirements of the JSE Limited (“the Listings Requirements”), is subject to certain conditions precedent, including the approval of the Competition Commission. The Plastform disposal will be effective from the end of the month in which the conditions precedent, chiefly competition approval, are fulfilled.
4. The Flexibles disposal
Consol has disposed of the business of Flexibles to Polypak (Proprietary) Limited, a packaging company based in the Cape. The Flexibles disposal was effective from 28 April 2006.