| Thu 13 Apr 2006, 14:00 | | SABMiller announces further Black Economic Empower |
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SAB
SOSAB
SABMiller announces further Black Economic Empowerment transaction
SABMiller plc
JSEALPHA CODE : SAB
ISSUER CODE : SOSAB
ISIN CODE : GB0004835483
SABMiller announces further Black Economic Empowerment transaction
London and Johannesburg, 13 April 2006. The South African Breweries Limited
(SAB), a wholly owned subsidiary of SABMiller plc, today announced that it
has finalised, subject to the fulfilment of certain conditions, the sale of
40% of its crown (bottle top) manufacturer, Coleus Packaging (Pty) Limited
(Coleus), to the Nokusa Consortium, led by Nokusa Investments (Pty) Limited,
in a Black Economic Empowerment (BEE) transaction. Nokusa will be involved
at a strategic level as well as an operational level and will have the right
to appoint two directors to the five member board. The value of the gross
assets disposed of by SAB is approximately R30 million (US$4.9 million).
Coleus, which is South Africa"s biggest producer of metal bottle closures,
produces around 4.9 billion crowns per annum for the brewing and bottling
industries in Southern Africa, and had a turnover of approximately R132
million (US$21.5 million), for the year to 31 March 2005. SAB acquired
Coleus in 2003, in a transaction whereby SAB committed itself to both
significantly improving Coleus" manufacturing plant and to a 40% BEE
transaction, within a specified timeframe.
Since 2003, SAB has invested R16 million (US$2.6 million) in improving the
performance of the Coleus business, including significant investment in new
equipment and training to develop local skills. Under SAB"s ownership,
factory efficiencies have risen from 50% to a current average of 76%, with a
record high of 80% in March this year. As part of the BEE transaction, SAB
has committed to purchasing its crown supply from Coleus, cementing a
positive future for the business.
Tony van Kralingen, Managing Director of SAB commented:
"We are delighted to announce another BEE transaction with an experienced
consortium. Nokusa members are highly skilled professionals who have a
diverse range of skills and expertise in the FMCG, packaging and
manufacturing industries, as well as experience in operating in the rest of
Africa. They will be an excellent partner for the business and we look
forward to working with them."
Moss Hadebe, Chairman of the consortium added:
"Nokusa demonstrated that it offered the most attractive overall package and
provided the best fit with Coleus. We welcome our partnership with SAB and
believe that our input into operations and strategy formulation will benefit
all parties. This direct strategic and operational involvement sets a welcome
trend in BEE transactions."
Ends
Notes to editors:
SABMiller
SABMiller plc is one of the world"s largest brewers with brewing interests or
distribution agreements in over 60 countries across five continents. The
group"s brands include premium international beers such as Miller Genuine
Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional
range of market leading local brands. Outside the USA, SABMiller plc is also
one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2005, the group reported US$2,194 million pre-tax
profit and a turnover of US$14,543 million on a UK GAAP basis. SABMiller plc
is listed on the London and Johannesburg stock exchanges.
Nokusa
Nokusa Investments (Pty) Ltd is an investment company led by six black
entrepreneurs with extensive experience in managing large-scale businesses.
The consortium also includes groups of historically disadvantaged South
Africans including Shandura, which has 13 professional women beneficiaries,
Izindophi Community Project, a rural women"s grouping from Kwazulu-Natal with
11 beneficiaries and the Kapano Disabled Movement with 29 members.
This announcement is available on www.sabmiller.com
High resolution images are available for the media to view and download free
of charge from: www.vismedia.co.uk
Enquiries:
SABMiller plc Tel: +44 20 7659 0100
Sue Clark Director of Corporate Tel: +44 20 7659 0184
Affairs
Gary Leibowitz Senior Vice President, Tel: +44 20 7659 0174
Investor Relations
Nigel Fairbrass Head of Media Relations Tel: +44 20 7659 0105
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
"Company") or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
This document includes "forward-looking statements". These statements may
contain the words "anticipate", "believe", "intend", "estimate", "expect" and
words of similar meaning. All statements other than statements of historical
facts included in this announcement, including, without limitation, those
regarding the Company"s financial position, business strategy, plans and
objectives of management for future operations (including development plans
and objectives relating to the Company"s products and services) are forward-
looking statements. These forward-looking statements involve known and
unknown risks, uncertainties and other important factors that could cause the
actual results, performance or achievements of the Company to be materially
different from future results, performance or achievements expressed or
implied by such forward-looking statements. These forward-looking statements
are based on numerous assumptions regarding the Company"s present and future
business strategies and the environment in which the Company will operate in
the future. These forward-looking statements speak only as at the date of
this announcement. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward-looking
statements contained in this announcement to reflect any change in the
Company"s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Any information contained in this announcement on the price at which the
Company"s securities have been bought or sold in the past, or on the yield on
such securities, should not be relied upon as a guide to future performance.
Date: 13/04/2006 02:00:17 PM Produced by the JSE SENS Department
