13th Apr 2006 13:00
SABMiller PLC13 April 2006 Ref 16/2006 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 hasfinalised, subject to the fulfilment of certain conditions, the sale of 40% ofits crown (bottle top) manufacturer, Coleus Packaging (Pty) Limited (Coleus), tothe Nokusa Consortium, led by Nokusa Investments (Pty) Limited, in a BlackEconomic Empowerment (BEE) transaction. Nokusa will be involved at a strategiclevel as well as an operational level and will have the right to appoint twodirectors to the five member board. The value of the gross assets disposed ofby 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 bottlingindustries 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 improvingColeus' manufacturing plant and to a 40% BEE transaction, within a specifiedtimeframe. Since 2003, SAB has invested R16 million (US$2.6 million) in improving theperformance of the Coleus business, including significant investment in newequipment and training to develop local skills. Under SAB's ownership, factoryefficiencies have risen from 50% to a current average of 76%, with a record highof 80% in March this year. As part of the BEE transaction, SAB has committed topurchasing its crown supply from Coleus, cementing a positive future for thebusiness. Tony van Kralingen, Managing Director of SAB commented: "We are delighted to announce another BEE transaction with an experiencedconsortium. Nokusa members are highly skilled professionals who have a diverserange of skills and expertise in the FMCG, packaging and manufacturingindustries, as well as experience in operating in the rest of Africa. They willbe an excellent partner for the business and we look forward to working withthem." Moss Hadebe, Chairman of the consortium added: "Nokusa demonstrated that it offered the most attractive overall package andprovided the best fit with Coleus. We welcome our partnership with SAB andbelieve that our input into operations and strategy formulation will benefit allparties. This direct strategic and operational involvement sets a welcome trendin BEE transactions." Ends Notes to editors: SABMiller SABMiller plc is one of the world's largest brewers with brewing interests ordistribution agreements in over 60 countries across five continents. The group'sbrands include premium international beers such as Miller Genuine Draft, PeroniNastro Azzurro and Pilsner Urquell, as well as an exceptional range of marketleading local brands. Outside the USA, SABMiller plc is also one of the largestbottlers of Coca-Cola products in the world. In the year ended 31 March 2005, the group reported US$2,194 million pre-taxprofit and a turnover of US$14,543 million on a UK GAAP basis. SABMiller plc islisted on the London and Johannesburg stock exchanges. Nokusa Nokusa Investments (Pty) Ltd is an investment company led by six blackentrepreneurs with extensive experience in managing large-scale businesses. Theconsortium also includes groups of historically disadvantaged South Africansincluding Shandura, which has 13 professional women beneficiaries, IzindophiCommunity Project, a rural women's grouping from Kwazulu-Natal with 11beneficiaries 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 ofcharge from: www.vismedia.co.uk Enquiries: SABMiller plc Tel: +44 20 7659 0100 Sue Clark Director of Corporate Affairs Tel: +44 20 7659 0184 Gary Leibowitz Senior Vice President, Investor Tel: +44 20 7659 0174 Relations Nigel Fairbrass Head of Media Relations Tel: +44 20 7659 0105 This announcement does not constitute an offer to sell or issue or thesolicitation of an offer to buy or acquire securities of SABMiller plc (the"Company") or any of its affiliates in any jurisdiction or an inducement toenter into investment activity. This document includes "forward-looking statements". These statements maycontain the words "anticipate", "believe", "intend", "estimate", "expect" andwords of similar meaning. All statements other than statements of historicalfacts included in this announcement, including, without limitation, thoseregarding the Company's financial position, business strategy, plans andobjectives of management for future operations (including development plans andobjectives relating to the Company's products and services) are forward-lookingstatements. 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 fromfuture results, performance or achievements expressed or implied by suchforward-looking statements. These forward-looking statements are based onnumerous assumptions regarding the Company's present and future businessstrategies 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 disseminateany updates or revisions to any forward-looking statements contained in thisannouncement to reflect any change in the Company's expectations with regardthereto or any change in events, conditions or circumstances on which any suchstatement is based. Any information contained in this announcement on the price at which theCompany's securities have been bought or sold in the past, or on the yield onsuch securities, should not be relied upon as a guide to future performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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