SAB buys into Coca-Cola in Zambia
12 February 2002
London/Johannesburg, Tuesday, 12 February 2002. South African Breweries International (Africa) B.V. (SABI (Africa)) has announced that its Zambian subsidiary, Zambian Breweries Plc (ZB Plc), listed on the Lusaka Stock Exchange, has acquired the entire issued share capital of the Coca-Cola bottler, Zambia Bottlers Limited (Zambia Bottlers) from a vendor consortium including The Coca-Cola Export Corporation for a total consideration of US$21.5 million, payable in cash.
The purchase consideration of US$ 21.5 million will be funded by a combination of ZB Plc's internal resources and a proposed rights issue by ZB Plc. This transaction will allow Zambian investors to gain exposure to Zambia Bottlers via ZB Plc.
Zambia Bottlers currently operates two bottling plants in Kitwe and Lusaka, which produce the full range of Coca-Cola products, and, in addition, market and distribute a range of cordials. In 2001 Zambia Bottlers generated total carbonated soft drinks (CSD) sales of some 445 000 hl. Presently Zambia Bottlers accounts for approximately 92% of the CSD market in Zambia.
André Parker, managing director of SABI (Africa & Asia) said: "We are extremely pleased to have acquired Zambia Bottlers. Today's deal is in line with our strategy of driving down unit costs by extracting synergies through the integration of beer and soft drinks operations".
The deal has the approval of the Zambian Competitions Commission.
Notes to editors
- SABI (Africa) is a subsidiary of South African Breweries plc (SAB), the world's leading brewer in developing markets, with interests in Africa, Central and Eastern Europe, Central America and Asia. SAB is the world's fifth largest brewer overall by volume with 108 breweries in 24 countries and over 31,000 employees.
- In the year to March 31 2001 SAB generated US$646 million pretax profit from a turnover of US$4.184 billion. SAB is listed on both the London and the Johannesburg stock exchanges.
For further information:
Anna Miller Salzman
Head of Investor Relations,SAB plc
+44 (0) 20 7659 0106
Mob: +44 (0) 7973 837 070
Communications Manager, SABI
+27 (0) 11 407 1822
Mob: +27 (0) 836 310 308
Head of Corporate Communications,SAB plc
+44 (0) 20 7659 0120
Mob: +44 (0) 7979 954 493