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SAB offers 10% equity to black community

Published:  01 July, 2009

Black drinks retailers in South Africa are being offered a 10% stake in South African Breweries as part of SABMiller's commitment to an economic empowerment programme.

Employees and customers are also eligible to apply for shares in the brewer, which collectively will be worth around R6bn (£470m).

The company said the shares would be likely to yield "meaningful cash dividends" from the first year and after 10 years can be exchanged for shares in the parent company SABMiller, whose shares are traded on the London stock exchange.

SABMiller chief executive Graham Mackay said: "We have structured this transaction to maximise benefits for all our stakeholders and to deliver genuine broad-based black economic empowerment.    

"The transaction aims to benefit the stakeholders who have made a real contribution to SAB's success as well as the broader South African community."