South African Breweries (SAB) will officially continue with the launch of its R5.4 billion worth of AB InBev shares. A broad-based black economic empowerment (B-BBEE) scheme, Zenzele Kabili, which was pushed back last year due to the Covid-19 outbreak.
Kaya Biz with Gugulethu Mfuphi unpacked how this will unfold with SAB Company Secretary Duncan Pask.
Listen to the full conversation:
Zenzele Kabili will launch next month, while the existing scheme, SAB Zenzele, will also reach maturity next month, a delay from the original timelines due to Covid-19.
“SAB plans to continue this trajectory of empowerment and wealth creation for staff, retailers and beneficiaries of the SAB Foundation. 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.”
Launched in 2010, the landmark SAB Zenzele transaction has given retailer partners – taverners, bottle store owners, retailer customers and employees, an opportunity at real ownership in a company.
Retailer shareholders who invested R100 in 2010 will have received a total pre-tax payout of R77,518 when the transaction fully unwinds in May 2021.
The SAB Zenzele Kabili will be listed on the BEE Segment of the JSE to facilitate liquidity and broaden ownership to other BEE investors, including qualifying SAB employees through a new ESOP.
There will be a substantial facilitation from SAB through discounted shares and vendor funding of a minimum term of 10 years.
According to SAB, The transaction will be leveraged through vendor preference share funding at a highly cost-effective funding rate of 70% of prime.
“Those that reinvest into SAB Zenzele Kabili will henceforth become global shareholders, receiving 25% in dividends annually, without having to wait ten years before being able to sell shares or get paid out. Additionally, SAB Zenzele Kabili shareholders will be able to trade immediately after listing.”
Photo by Tembela Bohle from Pexels


