E-Malt.com News article: South Africa: SABMiller reaches broad-based black economic empowerment transaction

SABMiller PLC, the South African brewery, has reached a broad-based black economic empowerment transaction, which will result in 8.45% of its South African subsidiary, The South African Breweries Limited, being held by a broad base of black participants, in a deal worth $988 million, Dow Jones reported on December, 8.

Participants will include SAB's employees; black-owned licensed liquor retailers and retail liquor licence applicants, as well as registered black-owned customers of ABI, the soft drinks division of SAB, and the broader South African community through a newly established SAB Foundation.

Under the transaction, The South African Breweries, or SAB, will issue three new classes of ordinary shares in SAB, in aggregate comprising 8.45% of SAB's enlarged issued share capital, to three separate investment entities, which will hold the interests of the participants.

The transaction period is expected to be ten years.

The transaction will not require any external bank funding, and meaningful cash dividends are expected to be paid to participants from the first year.


09 December, 2009