Putting your house in order
Another blue chip investment is about to disappear from the Johannesburg Securities Exchange if ABI minority shareholders accept the offer made by SABMiller. Having sold off its holding in a retail clothing chain a few months ago, SABMiller announced in September that it would use the liquidity to buy out minority interests in Amalgamated Beverage Industries, or short ABI (a Coca-Cola bottler for South Africa), in which it already has a 74 percent stake.
The R91 a share offer represents a premium of 32 percent on the closing price at which ABI traded on the day before its first cautionary announcement was made in July. Because the offer has been recommended by the board, SABMiller needs the support of only 75 percent of the minority shareholders.8 billion).3x (on 2005 estimates)..
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