Proposed distribution of its ABI's shareholding by Cadbury Schweppes
20 October 2000
Ordinary shareholders of Amalgamated Beverage Industries Limited ("ABI") are referred to an announcement issued today by Cadbury Schweppes (SA) Limited ("CSSA") and Cadbury Schweppes plc ("CS") which sets out salient terms of a proposed re-structure of CSSA, including a proposed distribution of CSSA's 14,6% shareholding in ABI to its shareholders, by way of a dividend in specie in terms of section 60 of the Income Tax Act (Act 113 of 1993), as amended ("the unbundling").
In terms of an existing agreement between the South African Breweries plc group ("SAB") and CSSA ("the ABI shareholders' agreement"), the parties thereto had certain rights, including pre-emptive rights over their reciprocal holdings in ABI. SAB has agreed to waive its rights under this agreement to enable the unbundling to be implemented on the basis that it will acquire those ABI shares that CS will be entitled to receive in terms of the unbundling ("the SAB acquisition"). On completion of the SAB acquisition, the ABI shareholders' agreement will be cancelled.
Accordingly, subject to implementation of the unbundling, SAB will acquire 12 272 169 ABI shares at a price of R40.40 per share, based on the recent volume weighted trading price history of the share prior to 20 October 2000.
|Issued on behalf of:||South African Breweries plc|
|E A G Mackay - Group Chief Executive||+44 207 659 0100 (London)|
|N G Cox - Group Financial Director||+44 207 659 0100 (London)|