SAB’s BEE deal approved
Staff of South African Breweries and retailers of the company's products who hold valid liquor licences issued by the various provincial liquor boards are likely to be better off soon now that the High Court of Justice in England and Wales has sanctioned a Scheme of Arrangement that will give effect to the group`s proposed broad-based black economic empowerment transaction in South Africa.
Proposed by SABMiller plc, the scheme was approved by the court yesterday.
In terms of the deal, which was overwhelmingly approved by shareholders at a general meeting in January, new shares in the company`s South African subsidiary, The South African Breweries Limited ("SAB"), will be allocated to
three participant groups:
1) SAB employees,
2) Qualifying black-owned beer and soft drink retailers, and
3) A new SAB Foundation for the benefit of the broad South African community.
The purpose of the empowerment transaction is to further increase black participation in SAB and provide long-term economic benefits to a broader range of black South Africans.
It is expected that the SAB Zenzele offer to licensed retailers of alcoholic beverages will open later this month. Final allocations of shares in respect of all three participant groups will be determined in May.
Full details of the transaction structure can be found in the circular issued to shareholders in December 2009, which is also available at www.sabmiller.com. Further details of the transaction can also be found on SAB's website.
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