SAB has been actively engaged in the advancement of black economic empowerment initiatives in South Africa since the 1970s.
Through SAB Zenzele, SAB welcomed almost 40 000 new shareholders in SAB in addition to many new beneficiaries through the SAB Foundation when the transaction was implement in June 2010.
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.
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.
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.
- SAB Zenzele, a South African registered public company, now holds 42% of the SAB shares issued under the transaction.
- 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.
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.
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 South Africa.
Since its implementation in 2010, SAB has paid more than a total of R137.73-million in dividends to SAB Zenzele shareholders and the SAB Foundation.
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