RMB advises HEINEKEN beverages SA on employee share ownership scheme

Client challenge

HEINEKEN Beverages is a drinks producer that combines rich African heritage with international expertise. Built on the legacy of three great companies – Heineken, Distell and Namibian Breweries Limited – it brings together over 100 years of global experience, innovation and excellence across 70 iconic brands. 

In a separate but related transaction RMB acted as sole financial adviser to HBSA in relation to the restructuring of the Distell Development Trust (“DDT”) which now forms part of the BEE structure of HBSA and results in total BEE ownership of 15% at the HBSA level. RMB assisted HBSA in developing and implementing a sustainable and efficient transaction structure that met HBSA’s transformation objectives and seamlessly integrated with the internal implementation steps required as part of HEINEKEN’s acquisition of Distell and related entities, under tight timeframes imposed by the South African regulatory authorities.

The RMB solution

RMB acted as sole financial adviser to HEINEKEN Beverages South Africa in relation to the establishment of its employee share ownership scheme (”ESOP”). The ESOP will own, through the Bokamoso Trust, 6% of HBSA and directly benefit its almost 5,000 South African employees. 

RMB pulled on its wealth of knowledge in the BEE advisory space to ensure that both the ESOP Transaction and DDT transaction were structured in an efficient manner but most importantly that both these structures resulted in enduring benefits to HBSA’s employees/communities into perpetuity whilst at the same time meeting the regulatory conditions as agreed as part of the Merger Transaction within tight regulatory imposed timeframes. The ESOP Transaction and DDT transaction had to seamlessly integrate with the internal restructuring steps to combine the HEINEKEN and Distell businesses following the Merger Transaction.

Client enablement

The ESOP and DDT Transactions will go a long way to enhancing the lives of the employees and communities in which HBSA operates. A stronger and aligned stakeholder base will translate into a stronger HBSA, geared towards success with its employees and communities, together.