SAB reaches black ownership deal

Employees will not have to pay anything for their SAB shares

The world's second biggest brewer SABMiller is to allocate 10% of the shares in its South African unit SAB to black investors.

The shares will be divided between SAB employees, retailers selling SAB products and community groups.

The deal will help SAB comply with the government's policy of shifting more ownership to the black majority.

After 10 years, the SAB shares will be exchanged for shares in the London-listed parent company.

Employees and the SAB foundation, which will give the shares to community groups, will not have to pay for their shares at all, while the retailers will have to make small cash payments. The company will fund the share transfer through the use of its dividends.

SABMiller said that the deal would be worth $750m and that it would pay "meaningful" cash dividends to participants from the first year.

Companies in South Africa that do not meet black economic empowerment targets cannot do business with the government or with other companies that are bidding for government contracts.