SAB Zenzele Kabili is launched with eye on accessible investing
JOHANNESBURG - SAB ZENZELE Kabili, a R5.4 billion broad-based black economic empowerment (B-BBEE) scheme, was officially launched yesterday amid much fanfare.
The scheme was expected to list on the JSE on May 28 at an initial listing price of R40 per share to make the share accessible.
The launch was postponed last year because of the Covid-19 outbreak.
The underlying asset that SAB Zenzele Kabili will hold will be R5.4bn of Anheuser-Busch InBev (AB InBev) shares. AB InBev’s shares generally trade at about R1 000 a share.
SAB Zenzele Kabili comes in the wake of SAB Zenzele, the largest B-BBEE scheme in the history of South Africa’s fast-moving consumer goods sector, reaching maturity this month.
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 AB InBev shares.
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 be paid out.
Retail shareholders still need to vote in the new scheme at a meeting to be held on May 10 before the scheme can list in the B-BBEE Segment of the JSE.
At the launch yesterday, shareholders were urged to vote on the scheme before that meeting via proxy by downloading the SAB Zenzele Kabili app, which was available in the iOS Store and the Google Play Store, or they could email or fax the physical forms, or contact the SAB call centre for help.
Richard Rivett-Carnac, the vice-president of finance, legal and corporate affairs: Africa Zone at AB InBev, said yesterday he believed AB InBev would, over time, perform as a global business that participated in multiple markets across the world.
He said AB InBev was a natural hedge in terms of foreign exchange devaluation that over time would see the rand devalue against euro. For every R1 invested, SAB Kabili would give 50c in free shares from day one.
He estimated that 35 000 employees would be on the new scheme, but as they traded the share, that number would grow to include the general public.
Duncan Pask, the company secretary of SAB and AB InBev Africa, said the new scheme was more liquid, and with the underlying assets being AB InBev shares, shareholders would see real value and price transparency.
Dr Penuell Maduna, the chairperson of SAB Zenzele, said shareholders should reinvest in SAB Zenzele Kabili, as being part of the largest beer-making group on Earth was “a very wise investment”.
As AB InBev shares grew in value internationally, so the value of SAB Zenzele Kabili shares would grow exponentially, he said.
Maduna emphasised that it was good to create generational wealth.