Deal will see nearly 5 000 employees holding a 6% share in the company.
Heineken Beverages South Africa on Wednesday confirmed that its almost 5 000 employees will jointly own a stake in the company through an employee share ownership plan called Bokamoso.
The empowerment scheme, which was one of the conditions of ownership imposed on the Dutch brewer by local competition authorities, will see Heineken South Africa employees holding a 6% share in the company.
News of Heineken’s move to buy South African wine and spirits maker Distell Group for over R38 billion first broke in November 2021. The transaction, however, only received approval from local competition authorities earlier this year.
Heineken said the approval gives the go-ahead for an "ambitious package" of public interest commitments including ongoing business investment, broad-based black economic empowerment, job creation, localisation and supplier development.
Heineken also pledged R15.5 billion towards the expansion of the company’s breweries and beverages manufacturing lines in South Africa at the fifth South African Investment Conference.
According to Heineken, the perpetual employee share ownership scheme will also be open to future South African full-time employees and fixed-term contractors within the South African operations.
“Our people are at the heart of our business, and we consider our employees partners on our growth journey, geared towards our future together,”
the group’s corporate affairs director Millicent Maroga said in a statement.
The company says it expects to pay dividends twice a year, subject to performance.
Source: Moneyweb
