The client challenge
In 2010 SAB Zenzele was established through an issuance of SAB shares to the employee trust, retailers and the SAB Foundation. SAB Zenzele reached a total maturity value of R9.7bn – the highest BEE value creation in the FMCG industry. This meant that retailer shareholders who invested R100 in 2010 received a total pre-tax payout of R77 518 when the transaction was unwound in May 2021. With SAB Zenzele reaching maturity in May 2021, a replacement BEE ownership scheme was required to continue SAB’s commitment to broad-based empowerment.
The RMB solution
RMB as financial adviser to SAB and AB InBev, assisted with structuring SAB Zenzele Kabili (the replacement BEE ownership transaction) which will hold R5.4bn worth of AB InBev shares. Retailer shareholders and the SAB Foundation were given an opportunity to reinvest a portion of their unwound proceeds. A new employee share ownership plan was established for qualifying SAB employees to participate in SAB Zenzele Kabili. RMB also facilitated the listing of SAB Zenzele Kabili on the JSE.
Benefits for the client
This transaction enabled SAB to continue its trajectory of empowerment and wealth creation for staff, retailers and beneficiaries of the SAB Foundation.
SAB Zenzele Kabili is now listed on the BEE segment of the JSE to facilitate liquidity and broaden ownership to other BEE investors. This will allow participants to trade their shares without negatively affecting the BEE ownership position of the company.
| Client | AB InBev |
|---|---|
| Size of the Transaction | R5.4billion |
| Sector | |
| Capabilities | Corporate Finance Advisory |
| RMB's role | Financial adviser to SAB Zenzele Kabili, SAB and AB InBev Transaction sponsor |
| Country | South Africa |