South African Breweries Limited (SAB), a wholly owned subsidiary of SABMiller, on Thursday announced that it has finalised, subject to the fulfilment of certain conditions, the sale of 40% of its crown (bottle top) manufacturer, Coleus Packaging, to the Nokusa Consortium, led by Nokusa Investments in a black economic empowerment (BEE) transaction.
Nokusa will be involved at a strategic level as well as an operational level and will have the right to appoint two directors to the five-member board. The value of the gross assets disposed of by SAB is approximately R30-million.
Coleus, which is South Africa’s biggest producer of metal bottle closures, produces around 4,9-billion crowns per year for the brewing and bottling industries in Southern Africa and had a turnover of approximately R132-million for the year to 31 March 2005.
SAB acquired Coleus in 2003, in a transaction whereby SAB committed itself to both significantly improving Coleus’s manufacturing plant and to a 40% BEE transaction, within a specified timeframe.
Since 2003, SAB has invested R16-million in improving the performance of the Coleus business, including significant investment in new equipment and training to develop local skills. Under SAB’s ownership, factory efficiencies have risen from 50% to a current average of 76%, with a record high of 80% in March this year.
As part of the BEE transaction, SAB has committed to purchasing its crown supply from Coleus, cementing a positive future for the business.
Tony van Kralingen, managing director of SAB commented: “We are delighted to announce another BEE transaction with an experienced consortium. Nokusa members are highly skilled professionals who have a diverse range of skills and expertise in the FMCG, packaging and manufacturing industries, as well as experience in operating in the rest of Africa. They will be an excellent partner for the business and we look forward to working with them.”
Moss Hadebe, Chairperson of the consortium added: “Nokusa demonstrated that it offered the most attractive overall package and provided the best fit with Coleus. We welcome our partnership with SAB and believe that our input into operations and strategy formulation will benefit all parties. This direct strategic and operational involvement sets a welcome trend in BEE transactions.” — I-Net Bridge