Global brewer SABMiller expected to conclude its R7,3-billion Zenzele broad-based black economic empowerment (BBBEE) transaction, which would place 8,45% of its South African business, the South African Breweries’ (SAB’s), shares under black ownership, by May next year.

The brewer on Tuesday provided further details of the BBBEE transaction, saying the value of the transaction had increased as a result of a 70% rise in its US dollar share price.

The brewer announced in July that it planned to undertake a R6-billion BBBEE transaction that would result in the sale of 10% of SAB shares to employees, black-owned licensed liquor retailers and liquor licence applicants.

“We have adapted the originally envisaged transaction to ensure we remain true to our original goal of delivering a broad-based empowerment transaction which is both significant and distinctive,” SAB MD Norman Adami noted in a statement on Tuesday.

Three separate investment entities have been created to implement the transaction, which was expected to reach 67 000 new shareholders.

The SAB Zenzele Employee Trust would hold 18,5-million SAB shares for the benefit of employees, representing 40% of the SAB shares issued under the transaction.

Participants would include all permanent black employees of SAB, its subsidiaries and of the SABMiller group who were permanently resident in South Africa, as well as white employees who did not normally participate in existing group share option plans.

The South African registered public company, SAB Zenzele, would hold a further 19,2-million SAB shares for the benefit of retailers, representing 42% of the shares issued in terms of the transaction.

Black-owned licensed liquor retailers, black-owned retailers who had lodged or materially completed a licence application and black-owned registered customers of SAB’s soft drinks division, ABI, would be allowed to participate in the transaction through the public company.

Lastly, the SAB Foundation would hold 8,4% million SAB shares, or 18% of the shares issued under the transaction. The entity would apply its dividend income for the benefit of the wider South African community, the brewer stated.

Participants would have voting rights in SAB from inception and would receive bi-annual cash dividends from year one.

After the ten-year transaction period lapses, the participants would exchange their SAB shares for shares in SABMiller.

The transaction would result in an effective 14,1% BBBEE ownership in terms of South Africa’s BBBEE Codes of Good Practice.

The offer would open at the end of February next year.