SABMiller Announces Historic US$775mn Shareholding Deal

The emerging market brewing giant SABMiller has announced that it will sell 10% of its South African subsidiary, South African Breweries (SAB), to black investors to adhere to South Africa's Black Empowerment Initiative (BEI), which sets industry targets for equity ownership and is specifically aimed at affording greater control of Africa's largest economy into the hands of the black majority. Valued at ZAR6bn (US$775), the deal will see the brewer issue new shares to its employees as well as black-owned retailers of its beer and soft drinks products. With a market share in excess of 90%, SAB is ideally placed

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