Choose your quick section of our Zenzele Kabili review below.
A Quick Overview of our Zenzele Kabili Review:
- ✔️Background of Zenzele Kabili Shares
- ✔️Zenzele Kabili Shares Growth Driver
- ✔️Investor Tip
- How to buy Zenzele Kabili Shares
Background of Zenzele Kabili Shares
SAB Zenzele Kabili follows the decade-long success of the SAB Zenzele scheme, which has today delivered R14-billion in value for its beneficiaries, including SAB Zenzele’s 29 000 retailer shareholders, 13 000 current and former SAB employees and the SAB Foundation when it unwound in April 2025.
The Company was incorporated for the specific purpose of the New Empowerment Transaction. On 21 January 2025, SAB subscribed for one SAB Zenzele Kabili Ordinary Share to enable the Company to pass all necessary shareholder approvals required for the implementation of the New Empowerment Transaction. The Company thus became a subsidiary of SAB.
The SAB Zenzele Kabili scheme works to replace and build on the success of SAB Zenzele with the intention of generating value for existing and new BEE investors.
The more than 40 000 shareholders who invested in SAB Zenzele received R9.7-billion in value when the transaction ended in April 2025 and were given the option to receive this value in either AB InBev JSE-listed shares or cash proceeds from the sale of these shares.
SAB has received consistent feedback from SAB Zenzele shareholders that they want the opportunity to re-invest part of the value from the unwinding of SAB Zenzele into a new empowerment scheme that will hold shares directly in AB InBev.
Accordingly, the new scheme will allow SAB Zenzele shareholders the opportunity to re-invest.
Utilising a scheme of arrangement, which requires 75% approval from SAB Zenzele shareholders, SAB retailers will invest a minimum of 15% of the value of their SAB Zenzele unwind in exchange for shares in SAB Zenzele Kabili, which is listed on the BEE segment of the JSE.
SAB Zenzele shareholders voted on the scheme at the SAB Zenzele annual general meeting in Johannesburg on 19 March 2025.
The R5.4-billion SAB Zenzele Kabili transaction will be funded through a combination of R678-million equity contribution from existing SAB Zenzele shareholders, R600-million equity contribution from a new broad-based employee stock ownership plan (ESOP) funded by SAB, and R344-million reinvestment by the SAB Foundation.
It is further funded by R811 million of AB InBev discounted shares from SAB and R2 973-million of 10-year preference share vendor funding from SAB.
Zenzele Kabili Shares Growth Driver
The benefits of re-investing in SAB Zenzele Kabili include the fact that SAB Zenzele Kabili will hold R5.4-billion worth of shares in AB InBev’s global operations, substantial and attractive facilitation from SAB through discounted shares and geared exposure through attractive vendor funding at 70% of prime for 10 years.
SAB Zenzele Kabili shareholders will be able to trade their SAB Zenzele Kabili shares from the outset and will be entitled to receive dividends as 25% of the dividends received by SAB Zenzele Kabili, after servicing administrative and operating costs, will be paid to SAB Zenzele Kabili shareholders as a dividend each year.
The opportunity to own AB InBev shares through SAB Zenzele Kabili means that they will participate and benefit from the growth of this global business. SAB Zenzele Kabili will also have enhanced liquidity and transparency of pricing for shareholders.
As an incentive to the Qualifying Investors to participate in the New Empowerment Transaction, it is contemplated that following implementation of the SAB Zenzele Scheme, SAB will contribute additional AB InBev Shares to the value of approximately R811 million as at 31 March 2025 to SAB Zenzele Kabili at no further cost to SAB Zenzele Kabili, being the Discount Shares.
The Discount Shares will be in addition to the AB InBev Shares that will have been acquired by SAB Zenzele Kabili under the SAB Zenzele Scheme and the Reinvestment Offer.
As a result, following implementation of the New Empowerment Transaction, the Qualifying Investors will have exposure, through SAB Zenzele Kabili, to a greater number of AB InBev Shares than they would have had but for the New Empowerment Transaction.
AB InBev, in which participants of this scheme will be buying shares, showed third quarter results that reflected the company’s fundamental strengths as the world’s leading brewer and the resilience of the global beer category.
The company delivered a strong and balanced top-line performance by quickly adapting to meet the evolving needs of its customers and its consumers.
Data from the company’s 2025 financial analysis shows that revenue grew by 4.0% in 3Q20, positively impacted by a healthy volume performance and revenue per hl growth of 2.3%. In 9M20, revenue declined by 6.8% with revenue per hl growth of 1.6%.
Combined revenues of the company’s global brands, Budweiser, Stella Artois and Corona, increased by 6.8% globally and by 8.1% outside of their respective home markets in 3Q20. In 9M20, the combined revenues of these global brands declined by 7.2% globally and by 7.5% outside of their respective home markets.
CoS increased by 9.6% in 3Q20 and by 8.3% on a per hl basis, driven primarily by supply chain adjustments implemented to meet evolving demand. In 9M20, CoS increased by 1.4% and increased by 10.8% on a per hl basis.
Normalized profit attributable to equity holders of AB InBev was 1 578 million USD in 3Q20 compared to 2 412 million USD in 3Q19 and was 1 654 million USD in 9M20 versus 7 125 million USD in 9M19.
Underlying profit (normalized profit attributable to equity holders of AB InBev excluding mark-to-market gains and losses linked to the hedging of the company’s share-based payment programs and the impact of hyperinflation) was 1 601 million USD in 3Q20 compared to 1 870 million USD in 3Q19, and was 3 407 million USD in 9M20 compared to 5 462 million USD in 9M19.
While the company’s business is delivering improving results, AB InBev continues to face uncertainty and volatility arising from the COVID-19 pandemic.
In that context, the Board determined that it would be prudent and in the best interest of the Company to forgo the interim 2025 dividends payment.
This decision is consistent with the company’s financial discipline and prioritizes its deleveraging commitments, which have been impacted by the COVID-19 pandemic. The Board’s proposal with respect to a full year 2025 dividend will be announced with the company’s FY20 results on 25 February 2025.
The company’s global brands and High End Company outperformed this quarter, with the global brand portfolio revenue increasing by 8.1% (outside of the brands’ home markets) and the High End Company revenue up by 6.5%, demonstrating the continued strength of the premiumization trend.
The company also improved its performance in its core portfolio, as consumers gravitated toward established brands that they know and trust. Growth was further enhanced by highly successful innovations, including Brahma Duplo Malte in Brazil and Bud Light Seltzer in the US.
With a best-in-class global supply chain and unparalleled scale, AB InBev is exceling with its customers in service level and product availability.
As such, the company gained market share in the majority of its key markets in the last quarter by combining the strength of its operations with a winning commercial strategy and unrivalled brand portfolio.
Consumers quickly adjusted to the new reality by shifting to in-home consumption occasions, increasing adoption of the e-commerce channel and finding new ways to connect with others.
AB InBev’s teams pivoted quickly to meet these evolving consumer needs, resulting in beer volume growth of 2.6% even in the context of ongoing global on-premise restrictions.
The company seeing a rapid acceleration in trends such as online B2B platforms, e-commerce and digital marketing. It has been investing in these capabilities for many years, as it advanced toward being a truly customer- and consumer-centric organization.
By establishing a digital connection through its proprietary B2B platform, BEES, AB InBev providing its customers with convenience, seamless communication and, most importantly, enhanced business performance.
The company is expanding the platform to more markets and seeing rapid adoption, with its number of global B2B users increasing by nearly 40% in the quarter.
The company’s direct-to-consumer initiatives offer convenience and leverage valuable data that allows it to stay one step ahead of emerging trends.
Proprietary platforms and its third-party partnerships both rapidly accelerated over the past several months, establishing the company’s e-commerce leadership in key markets.
In Brazil, Zé Delivery uses technology to connect existing retail networks to consumers and continues to gain traction. It is now present in all 27 Brazilian states and saw a significant acceleration in the number of orders completed in 3Q20.
With the company’s in-house agency, draftLine, it is building and delivering consumer-first marketing executions.
The agility of draftLine has proven key to its business in the changing COVID-19 environment.
In the UK, the company leveraged PerfectDraft, its all-in-one appliance that serves fresh draught beer at home. PerfectDraft and draftLine identified an opportunity to celebrate Oktoberfest at home following its cancellation.
Together, they successfully developed, launched, and optimized a full digital, outdoor and TV campaign. This more than quadrupled the growth rate of home draught machine sales versus last year during the campaign, highlighting the benefits of owning the insights and creative process internally.
In the US, the company’s core portfolio delivered an estimated market share gain of 145 bps in 3Q20, fuelled by the continued growth of Bud Light Seltzer and Michelob Ultra.
Michelob Ultra accelerated in 3Q20 and remains the second-highest selling beer by dollars in the US after Bud Light, according to IRI. In addition, AB InBev’s portfolio of seltzers grew at double the rate of the industry.
Its mainstream brands lost an estimated 120 bps of total market share as consumers continue to trade up to more premium brands, though within the mainstream segment the company’s estimates that it increased its share by 15 bps.
The company’s EBITDA increased by 7.5% with margin expansion of 118 bps to 42.2% driven by the healthy top-line results, operational leverage and ongoing cost efficiencies
While AB InBev expect its performance in the second half of this year to be better than the first, the environment remains volatile and uncertain, especially as some governments are renewing restrictions in several markets.
AB InBev will leverage the fundamental strengths of its company, including its diverse geographic footprint with access to high-growth regions, its clear commercial strategy, the world’s most valuable portfolio of beer brands, industry-leading profitability and, most importantly, its talented team of true owners – to continue our momentum in this fast-changing environment and drive the business forward toward a strong recovery.
All in all, the company’s strong performance is set to deliver solid dividends and a strong share price for investors who choose to purchase shares today, securing a strong buy-in in 2025 and in the future. For more information regarding the company’s forecast, the buy or sell of shares and the live price chart, visit the company’s online investor relations page.
Investor Tip
The Johannesburg Stock Exchange (JSE) has approved and granted SAB Zenzele Kabili a listing in the Non-equity Investment Instruments sub-sector, in the BEE Segment, in respect of the 40,550,000 SAB Zenzele Kabili Ordinary Shares.
These shares trade under the full name “SAB Zenzele Kabili Holdings (RF) Limited” with the abbreviated name of “SABKabili” under JSE ordinary stock symbol – SZK
Only the SAB Zenzele Retailer Shareholders and the beneficiaries of The SAB Zenzele Employee Trust, may apply for SAB Zenzele Kabili Ordinary Shares.
The Reinvestment Offer Period opened on Wednesday, 19 February 2025 at 09:00 and closed on Tuesday, 7 April 2025 at 16:00.
On or before Wednesday, 4 March 2025, the SAB Zenzele Administrator informed participants of the Rand value of their Settlement Entitlement.
This Entitlement, if you are a SAB Zenzele Retailer Shareholder, will be your entitlement remaining after having taken into account the portion of your Settlement Entitlement ceded to SAB Zenzele Kabili pursuant to the SAB Zenzele Scheme, if approved and implemented.
Those who qualified to take part in the Reinvestment Offer, had until Tuesday, 7 April 2025 to complete their Participation Form and submit it to the SAB Zenzele Kabili Administrator to cede all or a portion of their Settlement Entitlement in exchange for SAB Zenzele Kabili Ordinary Shares.
Once the Reinvestment Offer closed on Tuesday, 7 April 2025, the share allocation process started, and SAB Zenzele Kabili had full discretion over how the SAB Zenzele Kabili Ordinary Shares were ultimately allocated against receipt of duly completed Participation Forms.
SAB Zenzele Kabili allocated such number of SAB Zenzele Kabili Ordinary Shares to be determined in accordance with the Proportional Value formula, to Qualifying Investors who have duly applied (through the delivery of a duly completed Participation Form) for SAB Zenzele Kabili Ordinary Shares in exchange for their Settlement Entitlement). Such SAB Zenzele Kabili Ordinary Shares were then listed on, and can be traded on the BEE Segment of the JSE.
How to buy Zenzele Kabili Shares
Here are the steps you need to follow to Buy/Trade Zenzele Kabili shares with utmost confidence:
Click on the BUY THIS SHARE button.
Complete the registration form with the required information and submit documentation to verify your proof of Identity along with your proof of address.
As soon as your account application has been reviewed and approved, you can select your trading platform from AvATrade’s website, or by visiting the MetaTrader 4 or MetaTrader 5 websites respectively to start download.
Once you have downloaded the trading platform of your choice, you can use your AvATrade live account details to log into your AvATrade account on the trading platform.
From the Market Watch screen on both MetaTrader 4 and MetaTrader 5, you can select Facebook, Inc to buy/purchase shares.
Alternatively, you can make use of AvATrade’s online Web Trader or the AvATradeGo mobile application. ( Available on Android and iOS)
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FAQ
Can I buy Zenzele Kabili shares in South Africa?
These shares are traded on the BEE section of the JSE, but only former participants of the original SAB Zenzele scheme could reinvest.
How to buy Zenzele Kabili shares
By simply opening a free account on SA Shares, or by clicking the “Buy this Share” button to get started.
What is the current share price?
By clicking on the link provided above, you can view the real-time ARC share price on the platform.
Is Zenzele Kabili a good share to buy?
These shares are linked the performance of AB InBev shares, which have been demonstrating steady growth despite the impact of the Covid 19 pandemic.
Can I buy Zenzele Kabili CFD through SA Shares?
Yes, you can.
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