SAB Zenzele scheme members due to receive R9.7bn
CAPE TOWN - SAB Zenzele empowerment scheme members are due R9.7 billion through the unwinding of the scheme, the highest BEE value creation in the fast moving consumer goods sector.
According to a recent announcement from parent and the world’s largest brewer AB Inbev, SAB Zenzele members who invested R100 in the scheme in 2010 will receive R76 000 when the BEE structure unwinds shortly after the March 31, 2020 maturity.
A new scheme, SAB Zenzele Kabili, which remains subject to shareholder approval, will build on the success of SAB Zenzele with the intention of generating meaningful wealth for existing and new BEE investors.
The over 40 000 shareholders who participated in SAB Zenzele will receive R9.7 billion in value when the transaction unwinds in April 2020 and will elect to receive this value in either AB InBev JSE-listed shares or cash proceeds from the sale of these shares. The new scheme will allow SAB Zenzele shareholders the opportunity to re-invest.
Under a scheme of arrangement, which requires 75% approval from SAB Zenzele shareholders, SAB Retailers will invest a minimum of 15% of the value of their SAB Zenzele unwind in exchange for shares in SAB Zenzele Kabili, which will be listed on the BEE segment of the JSE. SAB Zenzele shareholders will vote on the scheme at the SAB Zenzele annual general meeting to be held at Nasrec in Johannesburg on Thursday, 19 March.
The R5.4 billion SAB Zenzele Kabili transaction will be funded through a combination of R678 million equity contribution from existing SAB Zenzele shareholders, R600 million equity contribution from a new broad-based ESOP funded by SAB, R344 million reinvestment by the SAB Foundation, R811 million of AB InBev discounted shares from SAB and R2 973 million of 10 year preference share vendor funding from SAB.
The benefits of re-investing in SAB Zenzele Kabili are that the scheme will hold R5.4 billion worth of shares in AB InBev’s global operations and substantial and attractive facilitation from SAB through discounted shares and geared exposure through attractive vendor funding. Shareholders will be entitled to receive dividends, as 25% of the dividends received by SAB Zenzele Kabili, after servicing administrative and operating costs, will be paid to SAB Zenzele Kabili shareholders as a dividend each year.
SAB launched SAB Zenzele in 2010 through, among other things, the issue of 3.52 percent of its total issued shares to people who were, at the time, qualifying retail liquor licence holders, applicants or registered customers of ABI (which was at the time to the soft drinks division of SAB).