Delta Corporation says it does not anticipate any material changes to its relationship with SABMiller following the pending takeover of the South African-based brewer by AB InBev, the beverages manufacturer said yesterday.
BY VICTORIA MTOMBA
The mega brew deal is expected to be completed by Monday.
SABMiller has 22,7% shareholding in Delta.
In a notice yesterday, Delta said it has been an associate of SABMiller and would become an associate of the enlarged entity.
“We do not anticipate any material changes to the current relationship between Delta and the combined group following the completion of the AB InBev’s recommended combination with SABMiller,” Delta said.
Approvals for the deal have been obtained and the enlarged group would assume the name AB InBev with headquarters in Leuven, Belgium, and listed on Euronet Brussels, the Johannesburg Stock Exchange and Mexico Stock Exchange.
In the quarter ending June 2016, Delta said volumes for larger beer, sorghum beer and sparkling beverages declined by 1% from the previous year while revenues were down 11% from the previous year.
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Delta said the weakening macro-economic fundamentals exacerbated by declining per capita incomes, cash shortages and withdrawals limits, delays in salary payments and significant policy shifts made the business environment onerous.
The group said the environment was depressed as demand for beer remained low due to low disposable incomes. The brewer has been reducing prices of its products to stimulate demand.
The company’s associate, Schweppes Zimbabwe Limited’s volumes were up by 8%, while revenues were down by 5% due to higher contribution of water versus juice drinks.
