South Africa | SAB's B-BBEE shareholders give new scheme listing a thumbs-up

Zenzele Kabili will list on 28 May.

Zenzele Kabili will list on 28 May.

South African Breweries' (SAB) second Broad-based Black Economic Empowerment (B-BBEE) scheme Zenzele Kabili will be listed on the JSE on 28 May, after 95% of shareholders who cast their votes did so in favour of the listing.

Zenzele Kabili follows on the success of the beer maker’s first scheme, Zenzele, which was launched in 2010 and reached a maturation value of R9.7 billion this month.

The shareholders, made up of retailers who include tavern and bottle store owners, as well as the beer maker’s employees who invested R100 in 2010, will receive a R77 518 pre-tax payout when Zenzele unwinds later this month. The owner of the Carling Black Label and Brutal Fruit brands held an AGM for shareholders on Monday, during which they cast their votes.

The AGM came more than a year later than initially planned after Covid-19 restrictions led to SAB postponing the Zenzele Kabili launch that was set for April 2020.

The current shareholders were given the option to reinvest all their proceeds from the Zenzele payout or a minimum of 63.5% into Zenzele Kabili. Shareholders who chose to continue with their investment will receive annual dividends of 25% and can trade immediately after the listing, but SAB employees will have to wait five years before they can trade. Unlike the first scheme, Zenzele Kabili will be listed indefinitely.

The shareholders who choose to continue will own R5.4 billion of SAB’s parent company AB Inbev’s stock. Belgium-based AB Inbev merged with SAB in 2016. On Tuesday, in its  announcement of the listing, SAB said Zenzele Kabili will be listed to open up the scheme to other B-BBEE investors and to facilitate liquidity. Once the company is listed, the price will be set at R40 per share.

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