Published by the government of Zimbabwe
Martin Kadzere
13 November 2009
Harare — DELTA beverages has secured authority from the Reserve Bank of Zimbabwe to go ahead with the sale of its 41 percent stake in Ariston Holdings to a European-based agro-firm.
Ariston chief executive Mr Kumbirai Katsande confirmed that the Exchange Control approval of a deal worth about US$3,4 million was granted last week.
Foreign investors are allowed to have at least 10 percent equity in listed firms and anything above that requires the Exchange Control approval.
Sources familiar with the deal said the investors are using their Mauritius-based investment vehicle and are not new into the southern African region.
They have operations in South Africa, Botswana and Mozambique.
The group also has strong links with agricultural companies in Argentina. It is involved in various agricultural projects in horticulture and cattle.
"I can not comment much but the approval from the Reserve Bank of Zimbabwe was granted last week and we are now waiting for approval from the Competition and Tariff Commission," said Mr Katsande, without revealing more details.
Delta gained control of the agro-based company and the take-over was motivated by its desire to tap into Ariston's foreign currency resources arising from its exports.
Ariston is a net generator of foreign currency and Delta required this for its raw material needs. Broadly, the deal made sense from a Delta perspective, given limitations in sourcing foreign currency on the market.
The tables have since turned with dollarisation of the economy and Delta is now generating enough revenue. The company's production has since risen by over 50 percent after commissioning of the new bottling line.
Ariston is a horticultural company with five operating divisions which are Southdown Estates, which grows and processes tea, coffee, macadamia nuts and bananas.
Claremont Estates produces pome and stone fruit, breeder-protected field flowers and trout. Kent Estates is into the production of roses, poultry and livestock.
Favco distributes fresh fruits and vegetables while Capital Tea Company packages and distributes of tea and coffee.
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