SABMiller courts black investors

The worldÔÇÖs second-largest brewing company, SABMiller, has announced it will issue 10 per cent of its South African unit to black investors.  The deal, which falls in line with South AfricaÔÇÖs broad-based black economic empowerment regulations, will see 10 per cent of the brewerÔÇÖs South African subsidiary, South African Breweries (SAB), issued as shares to black investors. The transaction is expected to create around 60,000 new shareholders, of whom more than 95% will be black individuals or black majority-owned small businesses. These will include SAB employees, black-owned licensed alcohol retailers and the broader South African community through an SAB foundation. After a period of 10 years, participants will exchange their stake in SAB for shares in UK-based SABMiller, which is known for famous brands of beer such as Miller Lite, Peroni and Castle. Commenting on the deal, Norman Adami, managing director of SAB, said: "We were determined to design a transaction that would deliver truly broad-based and tangible benefits, and we believe this transaction will do that from the beginning. This deal is good for South Africa and good for SAB." The 10 per cent stake of SAB is worth around R6 billion (approx. ┬ú470 million). Graham Mackay, chief executive of SABMiller, said: "We have structured this transaction to maximise benefits for all our stakeholders and to deliver genuine broad-based black economic empowerment. The transaction aims to benefit the stakeholders who have made a real contribution to SAB's success as well as the broader South African community through the SAB Foundation." SAB employs around 9,000 people. Its soft drinks division, ABI, is the largest producer and distributor of Coca-Cola brands in southern Africa and accounts for approximately 60% of Coca-Cola's sales in the region. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *