SAB has been actively engaged in the advancement of black economic empowerment initiatives in South Africa since the 1970s.
SAB Zenzele
“SAB Zenzele takes our long-standing commitment to supporting black empowerment to a new level, providing a strong platform from which to empower and improve the social well-being of thousands of South Africans.”
Norman Adami, Chairman and Managing Director, SAB Ltd.
Full terms announcement takes SAB’s BBBEE transaction up to R7.3 billion
The detailed terms of SAB’s broad-based black economic empowerment (BBBEE) transaction, announced 8 December 2009, revealed a significant increase in the transaction’s total value from approximately R6 billion announced on 1 July 2009 to R7.3 billion.
Once implemented, an estimated 67 000 new shareholders will own 8.45% of SAB Limited’s equity, of which over 95% will be black individuals or black majority-owned enterprises.
Three separate investment entities have been created through which the three key constituents will participate: SAB Ltd employees, qualifying black-owned beer and soft drink retailers, and a new SAB Foundation.
SAB’s compliance with the South African Government’s Codes of Good Practice on Broad-Based Economic Empowerment (the ‘Codes’) will be materially enhanced through the transaction. Scheduled to conclude in May 2010, the transaction will equate to an effective 14.1% BBBEE transaction in terms of the BBBEE Codes of Good Practice.
Highlights
· The total value of the transaction is R7,3 billion
· 8.45% of SAB Ltd shares to be held by broad base of black participants
· Over 95% of estimated 67 000 new shareholders will be black individuals or majority black-owned enterprises
· There’s no external bank funding required, making the transaction distinctive and sustainable
· The transaction is affordable and accessible
· Participants will benefit financially from year one and it is expected that they will receive a meaningful cash dividend bi-annually for ten years (the transaction period), after which they could stand to benefit further when the SAB Limited shares are exchanged for SABMiller shares
· Many historically disadvantaged South Africans will benefit through the new SAB Foundation
· Three separate investment entities will represent the three participating constituents:
· The SAB Zenzele Employee Trust for SAB employees
· SAB Zenzele Holdings Limited, a registered public company (SA) for qualifying black-owned retailers
· A new SAB Foundation
The broad-based approach and inclusiveness of this transaction reflects the company and group’s long-standing and on-going commitment to socio-economic progress in South African society.
Central to the transaction’s rationale is that SABMiller believes broad-based black economic empowerment is key to the promotion of sustainable economic growth and social development in
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