AB InBev lists on the JSE
Johannesburg, 15 January 2016: The first company to list on the Johannesburg Stock Exchange (JSE) in 2016 is AB InBev, leading global brewer and one of the world’s top five consumer products companies.
AB InBev’s listing follows the November 2015 announcement by the boards of directors of AB InBev and SABMiller that they had reached an agreement on the terms of a recommended acquisition of the entire issued share capital of SABMiller by AB InBev.
Donna Oosthuyse, JSE Director of the JSE Capital Markets, says, “Today’s listing reflects well on South African financial markets and sends a positive message to potential issuers, both local and international. From today, the Ordinary Shares of AB InBev will be tradable by South African local investors without using their foreign portfolio allowances. The listing provides investors with an attractive rand hedge, particularly in light of a weaker currency and an opportunity to invest and participate in, the future growth of AB InBev.”
AB InBev’s listing was effected following the JSE’s approval to grant the company a secondary listing of its Ordinary Shares and fulfilment of the requirements of the fast track listing process. The fast track listing process was introduced to the JSE’s listing requirements in 2014. This enables companies to secondary list on the JSE more quickly and easily if they already hold a primary listing on certain international exchanges recognised by the JSE.
Oosthuyse says the JSE fast track process gives companies wanting a secondary listing on the exchange the opportunity to access South Africa’s capital at a lower cost by eliminating an additional administrative burden as companies prepare for a listing.: “In the JSE’s view, AB InBev’s decision to apply for a fast track listing helps to advance its ambitions in Africa and confirms its commitment to invest on the continent. Africa continues to be a key region for companies interested in expansion, given the continent’s rising GDP rates and growing middle class.”
Carlos Brito, Chief Executive Officer of AB InBev, says, “We are delighted to be listing on the JSE today. We were keen to do so as soon as possible as part of our commitment to investing in South Africa, and we appreciate the support we have received from the JSE, South African Reserve Bank and local investment community to make this happen. We look forward to welcoming new shareholders to AB InBev.”
AB InBev will be included in the Beverages sector of the main board, which has a total market capital capitalisation of R11.28 trillion and constitutes 14.7% of the overall market cap of the exchange.
The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 125 years. It connects buyers and sellers in equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management www.jse.co.za
H+K Strategies South Africa
Tel: +27 11 463 2198
Director: Capital Markets