South African Breweries PLC
12 February 2002
SOUTH AFRICAN BREWERIES BUYS INTO COCA-COLA IN ZAMBIA
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
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.
Andre 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
1. 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.
2. 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
Mitch Ramsay, Communications Manager, +27 (0) 11 407 1822
SABI Mob: +27 (0) 836 310 308
Ciaran Baker, Head of Communications +44 (0) 20 7659 0120
SAB plc Mob. +44 (0) 7979 954 493
This announcement is available on the SAB website at www.sabplc.com
This information is provided by RNS
The company news service from the London Stock Exchange