SAB to continue launch of R5.4bn Zenzele Kabili B-BBEE scheme
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DURBAN - SOUTH African Breweries (SAB) said yesterday that it was continuing with the launch of its R5.4 billion broadbased black economic empowerment (B-BBEE) scheme – Zenzele Kabili – after it was pushed back last year due to the Covid-19 outbreak.
Zenzele Kabili will launch next month, while the existing scheme, SAB Zenzele, would also reach maturity next month, a delay from the original timelines due to Covid-19.
However, the group said the Covid19-driven restrictions had prevented the necessary shareholder scheme meeting from taking place, and prevented beneficiaries from voting regarding payouts and reinvestment options.
“The SAB Zenzele board, together with SAB, recognised at the time that such postponement would have a significant negative impact on the anticipated cash flows of shareholders, which had been exacerbated by the pandemic.
“The board subsequently resolved, together with SAB, that each SAB Zenzele retailer shareholder would be paid a cash amount equal to 77.4 percent of the calculation of its right and entitlement from the unwind of SAB Zenzele less applicable costs and taxes. This cash payment, that amounted to R3.50bn took place in April 2020,” the group said.
The group added that the remaining entitlement of SAB Zenzele retailer shareholders was 22.6 percent of the calculation of their right and entitlement from the unwind of SAB Zenzele as at the date of the unwind of SAB Zenzele, adjusted for inflation over time.
The SAB Zenzele was launched in 2010 and has given its retailer partners – which include tavern owners, bottle store owners, retailer customers and their employees – an opportunity to own some shares in the company.
SAB Zenzele is the largest B-BBEE scheme in the history of South Africa's fast-moving consumer goods sector.
The company is offering SAB Zenzele
retailer shareholders the opportunity to reinvest a portion of their remaining proceeds into a replacement B-BBEE ownership transaction through the SAB Zenzele Kabili scheme, which would own R5.4bn worth of AnheuserBusch InBev shares.
SAB Zenzele chairperson Dr Penuell Maduna said the scheme meeting would now take place on May 10 in a digital environment where beneficiaries would vote regarding reinvestment of this portion.
“We all want to build a prosperous future for ourselves and our families. At SAB, we understand that this takes hard work and good partnerships.
“SAB Zenzele Kabili is set to be our biggest success yet, and despite these tough times, it is time for a new scheme for new dreams and ownership for all,” Maduna said.
He added that those who reinvest into SAB Zenzele Kabili would become global shareholders, receiving 25 percent in dividends annually, without having to wait 10 years before being able to sell shares or get paid out.
SAB Zenzele Kabili would be listed on the B-BBEE segment of the JSE to facilitate liquidity and broaden ownership to other B-BBEE investors, including qualifying SAB employees, through a new employee stock ownership plan.
Shareholders would be able to trade immediately after listing, SAB said yesterday.