Gauteng Business News

Send  Share  RSS  Twitter  09 Dec 2009

BEE: 67 000 New Black Shareholders for SAB


Recent Gauteng Business News

The South African Breweries Ltd (SAB) have announced the full terms of its broad-based BBBEE transaction. The transaction will place 8.45% of the company’s shares under black ownership and has increased in value from the initial estimate of R6 billion to R7.3-billion.

The transaction size was increased largely in response to the recent rise of about 70% in SABMiller’s USD share price, and the inclusion of a greater number of participants.

“We have adapted the originally envisaged transaction to ensure we remain true to our original goal of delivering a broad-based empowerment transaction which is both significant and distinctive,” said SAB Managing Director Norman Adami.

Several factors make the transaction distinctive, including that:

  • The benefits of the deal are targeted at major stakeholder groups who play a meaningful role in SAB’s long term business success
  • No external bank funding is required;
  • A meaningful bi-annual cash dividend will be paid from year one
  • The transaction is affordable and easily accessible - employees and the SAB Foundation will make no upfront cash payments while qualifying retailers will make only a small cash investment.

Participants will, from inception, have voting and economic rights in SAB Ltd, and bi-annual cash dividends are expected to be paid to all participants from year one for the whole of the ten-year transaction period.

The transaction forms part of SAB’s broader strategy, called the Five Thrusts Strategy. The fifth thrust of the strategy relates to SAB’s determination to maintain and enhance the organisation’s societal leadership.

“SAB recognizes that its role as one of SAB’s leading companies carries an inherent obligation to demonstrate leadership in every dimension of the business, including the role we must play in supporting the progress of South African society,” said Adami.

The transaction will target an estimated 67 000 new shareholders, of whom over 95% are estimated to be black individuals or black majority-owned enterprises. After the ten-year transaction period, SAB Ltd shares will be exchanged for SABMiller shares.

The offer is scheduled to open at the end of February 2010 and to conclude in May 2010.


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