SABMiller announces R6bn BEE deal

SABMiller (SAB), one of the world’s largest brewers, on Wednesday announced a proposed broad-based black economic empowerment (BEE) transaction worth about R6-billion, and which will place about 10% of the company’s shares under black ownership.

Participants will include SAB’s employees; black-owned licensed liquor retailers and liquor licence applicants, as well as black-owned customers of ABI, the soft-drinks division of SAB; and the broader South African community through an SAB foundation.

The transaction will target an estimated 60 000 new shareholders, of whom more than 95% are estimated to be black individuals or black majority-owned enterprises, and who will hold SAB shares through separate investment entities.

After the ten-year transaction period, SAB shares will be exchanged for SABMiller shares.

The full terms of the transaction are expected to be finalised in November 2009 and the offer is expected to conclude in the first half of 2010.

The transaction will materially enhance SAB’s compliance with the South African government’s Codes of Good Practice on Black Economic Empowerment, while also seeking to support the normalisation of the South African liquor industry by supporting liquor licensing in South Africa.

‘We have structured this transaction to maximise benefits for all our stakeholders and to deliver genuine broad-based black economic empowerment,” said SABMiller chief executive Graham Mackay.

‘There are three innovative and distinctive features of this transaction. Firstly, the transaction places no reliance on external bank funding, and requires only a relatively small and hence affordable cash investment from retail participants. Secondly, a meaningful dividend stream is expected to be paid to all participants for the whole of the ten-year transaction period, thereby delivering a significant economic benefit from the first year. Thirdly, the transaction aims to benefit the stakeholders who have made a real contribution to SAB’s success as well as the broader South African community through the SAB Foundation,” he said. — I-Net Bridge

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

2019: The ones who left us

From Uyinene Mrwetyana, Oliver Mtukudzi to Xolani Gwala, Mail & Guardian remembers those who have passed on

More battles ahead for domestic worker unions

Florence Sosiba, speaks to the Mail & Guardian about how important domestic workers are and exclusion in the COIDA

“Life has been good to me, considering where I come from” – Xolani Gwala

Just over a year ago, veteran radio presenter Xolani Gwala’s cancer was in remission. He spoke to the Mail & Guardian once he was back on air.

Kanya Cekeshe’s lawyer appeals decision not to grant him bail to the high court

Kanya Cekeshe’s legal team filed an urgent appeal at the Johannesburg high court on Tuesday against Monday’s judgment by magistrate Theunis Carstens.

Leader’s principal aim to build IFP

Gravitas: Velenkosini Hlabisa brings his experience to his new post as leader of the Inkatha Freedom Party.

Police Minister Bheke Cele addresses Jeppestown

Police minister Bheki Cele visited Jeppestown on Tuesday to speak to business owners and community leaders.

The PPE scandal that the Treasury hasn’t touched

Many government officials have been talking tough about dealing with rampant corruption in PPE procurement but the majority won't even release names of who has benefited from the R10-billion spend

ANC still at odds over how to tackle leaders facing...

The ANC’s top six has been mandated to work closely with its integrity committee to tackle claims of corruption against senior party members

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday