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SABMiller in S Africa deal

<div>SABMILLER,&nbsp;the world&rsquo;s second largest brewer, &nbsp;yesterday signed a deal to sell black investors 10 per cent of its South African business to comply with post-apartheid rules.<br /><br />The deal will hand black employees and other stakeholders a $775m (&pound;454m) chunk of the company&rsquo;s Johnannesburg-based subsidiary, at an estimated cost of $220m &nbsp;in the biggest empowerment deal in South Africa this year.<br /><br />By offering shares to roughly 60,000 new shareholders in its distribution network, SABMiller hopes to defend its dominant share of the South African market and encourage legalisation on informal bars.<br /><br />Chief executive of SABMiller Graham Mackay said: &ldquo;We have structured this transaction to maximise benefits for all our stakeholders and to deliver genuine broad-based black economic empowerment.&rdquo;<br /><br />Mackay said that the deal will not rely on external bank funding and it expects to pay the new shareholders a dividend in the first of the 10-year term of the deal. After 10 years, the shares will be exchanged for shares in the London-listed parent company.&nbsp;Since apartheid ended, companies &nbsp;must comply with the government&rsquo;s policy of shifting more ownership to the black majority.</div>