Global beer giant Anheuser-Busch InBev’s (AB InBev) South African empowerment vehicle SAB Zenzele Kabili’s accumulated losses hit R795-million at the end of December 2022.
The company sustained a loss of R40-million in 2022 mainly due to R373-million in finance costs and an R749-million loss in 2021 as a result of R191-million in finance costs. It also registered an R491-million fair value loss on financial assets.
In addition, at the end of December 2022, the company’s current liabilities of R285.7-million exceeded its current assets of R9.4-million by R276.3-million.
However, the SAB Zenzele Kabili’s total assets of R5.2-billion exceeded its total liabilities of almost R3-billion at the end of 2022.
“On 14 March 2023, an addendum to the facility agreement was signed between the company and SAB where the maturity date of the facility is extended from August 7 2023 to August 7 2025,” SAB Zenele said in a statement.
“This extension will assist the company with its liquidity shortfall as the loan will no longer be repayable in August 2023.”
SAB Zenzele Kabili owns 5.1-million AB InBev shares worth R6.1-billion this week with a market value of R1.5-billion. Therefore, the empowerment vehicle is trading at a 75% discount to the value of the AB InBev shares it owns.
SAB Zenzele Kabili bought the 5.1m AB InBev shares for R5.4bn. At the end of 2022, its shares had an estimated net asset value per share of R55.70. On Wednesday morning, the share price was quoted at R36.25, a 26% discount to the net asset value per share.
When SAB Zenzele Kabili was listed on the JSE on May 28 2021, its opening share price was R45.02, before peaking at R185 on June 14 2021. It has since declined to an all-time low of R34.21 this week.
SAB Zenzele Kabili, which has Moss Ngoasheng as its chairman, is listed on the black economic empowerment segment of the JSE and its shares are issued to SAB retailers, members of the public that qualify in terms of the B-BBEE Act, SAB employees, and the SAB Foundation.
Ngoasheng also serves as the chairman of the SAB Foundation, the Investec Property Fund, Temo Capital and is CEO of Safika Holdings. In addition, he serves on the boards of The Nelson Mandela Children’s Fund and The Nelson Mandela Children’s Hospital.
The SAB incorporated SAB Zenzele Kabili on December 5 2019, and its base is financial performance on the AB InBev share price and any dividend declared and received from AB InBev.
The empowerment vehicle had operating expenses of R7.5-million in 2022, down from R66.2-million in 2021.
The remuneration of the three SAB Zenzele Kabili directors was R1.2-million in 2022, an 89% increase from R611 000 in 2021.
Other than Ngoasheng, the other two directors are Ernest Kwinda and Itumeleng Dlamini.
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