Harare — DELTA Corporation Limited, Zimbabwe's biggest manufacturer of alcohol and non-alcoholic beverages is on the verge of acquiring African Distillers Limited, a manufacturer of spirits and wines.

At present, the conglomerate controls 29,8 percent of Afdis, which it bought from BAT Zimbabwe Limited in 2002 -- and is targeting to top-up its stake to just over 50 percent.

In a statement accompanying the group's financials for the interim period ended September 30 2009, Delta chairman Dr Robbie Mupawose said: "The group is actively pursuing one acquisition and one disposal. Closure on both these transactions is imminent."

The impending acquisition of Afdis would give Delta full control of its strategic partner, becoming the most diversified beverage group in the country.

Delta could this week conclude the sale of its 41 percent stake in agricultural concern Ariston Holdings.

Delta had gained control of the agro-based company and the takeover was motivated by Delta's desire to tap into Ariston's foreign currency resources arising from strong exports.

Afdis operates a distillery in Mutare, which also produces international brands under licence.

In the first six months to September 2009, Delta's operating income amounted to US$14,9 million.

For the period under review, operating margins were constrained by the dilative impact of imported products which were used as a stop gap measure to boost supplies to the market.

Turnover for the period was US$142 510 185.

Of the US$14,8 million capital expenditure, US$12 million was directed towards the new bottling line, which was funded from shares issued.

As at September, the group was in a net borrowed position of just under US$500 000.

During the period under review, total beverages volumes recovered strongly, bulking 83 percent, despite the production constraints experienced in the early part of the period.

Lager production received a boost of 50 percent of its packaging capacity from the installation of a 42 000 bottle per hour lager bottling line.

Meanwhile, the mothballed Zvishavane traditional beer brewery has been brought back on stream and the Chibuku Shake-Shake was relaunched last month.

Dr Mupawose said the first six months were exciting for the group saying: "Demand is strong and revival and rebuilding are underway.

"It has been somewhat frustrating that production has not been able to meet the growing demand due to the long lead times for capital equipment and for machine spares".

He added that the focus for the period would be on taking back market share that had been lost to importers at the end of last year and undertaking maintenance to provide a more reliable production base.

"Market share has recovered significantly across all beverage categories," he said.

Going forward, Dr Mupawose said business focus in the short term would be on retaining market share and recapitalisation.