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Johannesburg - SABMiller (SAB), one of the world's largest brewers, on Wednesday announced a proposed broad-based black economic empowerment (BBBEE) transaction worth about R6bn, 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 over 95% are estimated to be black individuals or black
majority-owned enterprises.
After the ten-year transaction period, SAB shares will be exchanged for SABMiller shares.
The transaction will equate to an effective 16% BBBEE transaction
in terms of the BBBEE Codes of Good Practice.
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.
"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," said Mackay.
"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