ZIMBABWE Stock Exchange-listed Delta Corporation Limited is set to swap 51% of its shareholding in Megapak for 24% shares in Nampak, a JSE-quoted company, an executive said yesterday.
Speaking at the company’s annual general meeting Delta Corporation chief executive Pearson Gowero said the company has expressed interest and the board has accepted the move.
“We will take 24% in Nampak Zimbabwe which will further be diluted to 22,6% as Nampak has indicated to put more capital in the company,” he said.
Gowero said Delta has no plans to put in additional funds in Megapak as it was a non-core business.
Gowero said the beverages group will be represented on Nampak’s board and a notice would be out in the next few days.
Nampak wholly owns CarnaudMetalbox Zimbabwe, the sole supplier of metal cans. It is in a joint venture with Delta Corporation in MegaPak, a manufacturer of plastic packaging products. Nampak has 49% shareholding and the remainder is owned by Delta.
Nampak has 38,6% shareholding in Hunyani Holdings.
Gowero said in his trading update the environment was characterised by low consumer demand and tight liquidity constraints.
He said during the period under review demand for the group’s products such as the lagers and soft drinks went down.
Revenue for the group was down by 3% for the quarter ended June 2014 to $149 million compared to the previous quarter due to depressed consumer demand.
Lager volumes were down 21% during the period under review while Maheu was up 22% on prior quarter.
He said the company’s subsidiaries, Schweppes Zimbabwe Limited and Afdis recorded growth during the period under review.
In the outlook, Gowero said volumes in lagers and soft drink will continue to reflect weak economic fundamentals although demand for sorghum was expected to remain strong.