Fidelity bank banner Bayelsa State banner
South African workers union eyes 18 per cent stake in Coca-Cola bottler

By Ann Crotty on 30/09/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 716


Katishi Masemola, general secretary of the Food and Allied Workers’ Union, is hoping his members will bag an 18% stake in Coca-Cola Beverage South Africa (CCBSA), the largest Coca-Cola bottler in SA.

The stake, which would be worth several hundred millions of rand, would have to be vendor-financed.

Masemola told the Competition Tribunal on Wednesday in Pretoria that employees of CCBSA should get this stake as part of the employee share ownership programme that is to be set up in terms of the conditions attached to approval of The Coca-Cola Company’s (TCCC’s) acquisition of Anheuser Busch Inbev’s (formerly SABMiller’s) 57% stake in CCBA.

CCBA was established in 2016, following a drawn-out merger process initiated in 2014. Its bottling operations cover SA, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros. The South African bottling operation (CCBSA) is the largest.

On Wednesday, the tribunal conditionally approved the $3.4bn transaction, which was prompted by Anheuser Busch Inbev’s acquisition of SABMiller in October 2016.

The deal increases TCCC’s holding in CCBA, which is the 10th-largest Coca-Cola bottler in the world, from 11% to 68%.

The Gutsche Family Investments, a private entity, holds the remaining 31.7%.

Masemola told Business Day that while the merging parties agreed to employees being allocated shares, “they couldn’t agree to the quantum”.

The Gutsche Family and TCCC indicated that the quantum could only be determined once they had decided who their black economic empowerment partner would be.

They did not give any indication of who their partner might be but have said they were talking to several parties.

In addition to talking to potential black economic empowerment parties interested in a stake in the South African bottling operation, TCCC has said it is engaging with other South African and international parties interested in acquiring a controlling interest in CCBA.

Earlier this year, TCCC said it acknowledged the government’s preference for promoting a South African controlling interest in companies deriving most of their revenue and profit from the domestic market and that it would “seriously consider South African parties”. In June, in a bid to minimise delays before the tribunal, TCCC undertook to increase its black economic empowerment equity stake in CCBSA to 30% by no later than 2021.

CCBSA, which had previously committed to a 20% black economic empowerment equity stake, said the 30% holding would include “an appropriate level of worker/employee ownership”.

The employee share ownership programme stake had to be independent of the black economic empowerment holding, Masemola said. Anything less than 10% would be unacceptable to employees, he added.

Masemola also hoped that the benefits to employees would be better than those offered by South African Breweries’ Zanzele scheme.

About “75% of dividends were used to repay the debt and 25% went to participants of the scheme, we would like to see much more than 25% from CCBSA dividends,” he said.

While this week’s decision by the tribunal brings an end to three years of engagement with the competition authorities, it might only be temporary relief for TCCC.

CCBA and TCCC could be back before the competition authorities if a controlling stake is sold to another party.

Source News Express

Posted 30/09/2017 3:21:35 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
LAGBUS to provide free bus ride on New...

Revealed: Identity of rescued Chibok school girl and...

Lawmakers investigate fresh hostilities in Niger Delta

Cocktails of governmental rascality on IPOB

Zinox expands assembly plant, to deploy robotics

Ex-Bayelsa deputy gov rules out defection to APC...

Chorister refuses to sing for Trump

Results trickle in after Liberia’s polls

Chibok girls being held in a distant forest...

Shell emerges Best Exhibitor at 2016 SPE conference...

Gunmen kill 20 in Kaduna

NSE market capitalisation improves by N24bn

 

Latest News Oshiomhole, 19 others elected at APC Convention World Cup: Football fan slips into coma while celebrating Super Eagles’ victory APC Convention: Drama as Oyegun’s security detail barred from Eagle Square HURIWA to world leaders: Intervene and stop crackdown on opposition in Nigeria Ekiti Guber: INEC, APC preloading card readers — Fayose Suspected herdsmen kill 18 in Adamawa village APC National Convention: Gov. Sani-Bello optimistic of peaceful, rancor-free exercise Prophet to Obasanjo: Seek forgiveness over June 12 Cholera: 24 new cases recorded in Adamawa APC loses members to PDP in Edo Lai Mohammed faults CPJ, says no journalist is in detention in Nigeria NHRC must push for quick investigation into Bukhari’s murder, end to impunity — SAMDEN

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,895 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (352,649 views) Shameless Genevieve Nnaji exposes breasts in public (280,833 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (230,517 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,356 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (209,251 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (182,161 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (164,347 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (154,099 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,952 views) Lagos plane crash: Journalist releases victims’ names (144,130 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,866 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,266) Business Verdict (44) Columnists (871) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (507) Features (607) Global Business Monitor (284) International (2,050) Interview (155) Live Commentary (28) Love Matters (124) News (36,439) Opinion (1,005) Pidgin (10) Politics (5,322) Religion (772) Sports (1,560) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Nigeria vs Iceland 2-0 All Goals & Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement