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.
SAB welcomes nearly 40 000 new shareholders through SAB Zenzele
Through SAB Zenzele, SAB welcomes almost 40 000 new shareholders in SAB in addition to many new beneficiaries through the SAB Foundation. First announced on 1 July 2009, the SAB Zenzele broad-based black economic empowerment (BBBEE) transaction places 8.45% of SAB’s shares under black ownership and is estimated to be worth R7.3 billion.
The BBBEE transaction is genuinely broad-based, and the participants are SAB employees (through The SAB Zenzele Employee Trust); black-owned licensed liquor retailers and liquor licence applicants, as well as registered black-owned customers of ABI, the soft drinks division of SAB, and a new SAB Foundation.
After the ten-year transaction period, SAB Zenzele shares will be exchanged for SABMiller shares in respect of the Retailer Offer and SAB shares will be exchanged for SABMiller shares in respect of The SAB Zenzele Employee Trust and The SAB Foundation.
Three separate investment entities have been created to implement the transaction:
· The SAB Zenzele Employee Trust now holds 40% of the SAB shares issued under the transaction. Participants include all permanent black employees of SAB, its subsidiaries and of the SABMiller Group who are permanently resident in
· SAB Zenzele, a South African registered public company, now holds 42% of the SAB shares issued under the transaction. Black-owned licensed liquor retailers and liquor licence applicants, as well as registered black-owned customers of ABI were eligible to participate.
· The newly created SAB Foundation now holds 18% of the SAB shares issued under the transaction. It will apply the dividend income received from these shares for the benefit of the wider South African community.
Participants, from inception, have voting and economic rights in SAB, and bi-annual cash dividends are expected to be paid to all participants from year one for the whole of the ten-year transaction period.
The broad-based approach and inclusiveness of this transaction reflects the company and group’s long-standing and ongoing commitment to socio-economic progress in South African society.
Central to SAB Zenzele is the company’s belief that broad-based black economic empowerment is key to the promotion of sustainable economic growth and social development in
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