SAB Zenzele is SAB’s broad-based black economic empowerment (BBBEE) transaction and was implemented in June 2010. Around 42 000 shareholders are direct beneficiaries of SAB Zenzele along with the SAB Foundation.
In the first seven years, SAB Zenzele paid out a total of R2.513-million in dividends to its shareholders and in addition, the scheme has generated some R10.3-billion in net value for its shareholders.
The scheme beneficiaries are:
- The SAB Zenzele Employee Trust
- SAB Zenzele Holdings Limited which holds shares for the benefit of black-owned beer and soft drink retailers
- The SAB Foundation Trust, which supports entrepreneurship projects with the aim of benefiting low-income communities.
This transaction was carefully constructed to be genuinely broad-based and began delivering real value to shareholders with a dividend pay-out beginning in the first year, a unique feature of the transaction.
- The benefits of the transaction are specifically targeted at the major stakeholder groups who have played a profound role in SAB’s long-term business success.
- The transaction was made affordable and easily accessible for targeted stakeholders. Employees and the SAB Foundation are not required to pay for their shares, and retailers make a nominal cash investment.
- There was no external bank funding required, contributing significantly to the sustainability of the transaction.
- Meaningful cash dividend stream was paid to all participants from year one, thereby delivering a significant economic benefit.
- Through the SAB Foundation, many historically disadvantaged South Africans benefit from sustainable ongoing investment aimed at fostering entrepreneurship.
Since the launch of the transaction, SAB Foundation Trust has received a total of R471.3-million in dividends and has in turn supported over 400 enterprises which offer products and services for the benefit of women, youth, people living with disabilities and rural communities.
A total of 29 543 retailers have received a total pay-out of R1,120.8-million in dividends through SAB Zenzele Holdings (RF) Limited.
A cumulative R921.7-million in dividends has been paid out to the SAB Zenzele Employee Trust over the five years.
The 10-year duration of the transaction means that it will reach maturity in 2020, at which time SAB Zenzele shares will be exchanged for tradable SABMiller PLC shares.
For more information call 0861 900 903.