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SAB's BEE deal to cost R1.8bn

Johannesburg - Brewery SABMiller on Wednesday confirmed its proposed R6bn broad-based black economic empowerment transaction would cost the company about R1.8bn to implement.

Speaking during a newswires conference call, SABMiller CE Graham Mackay said the transaction charge would be spread over the transaction's 10-year duration with the bulk of the charge being taken in the company's 2011 financial year, which begins on April 2010.

The deal puts about 10% of the company's shares under black ownership through the issue of new shares to an estimated 60 000 new shareholders including 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.

Mackay said the transaction would not require any external funding from banks and only a small cash investment required from participating retailers.

"SAB is ensuring the funding of the scheme," said Mackay, adding that the group believed this would make the scheme more sustainable.

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.

At 09:14 shares in SAB were 1.91% or 299c firmer at R159.89 on the JSE.

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