MIRA
INFORM REPORT
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Report Date : |
30.10.2007 |
IDENTIFICATION
DETAILS
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Name : |
THE SOUTH AFRICAN BREWERIES LTD |
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Formerly Known As : |
LEXSHELL 159 INVESTMENT HOLDINGS (PTY) LTD |
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Registered Office : |
65 Park Lane, Sandown, SANDTON, Gauteng |
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Country : |
South Africa |
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Date of Incorporation : |
11 December 1998 |
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Com. Reg. No.: |
1998/006375/06 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Brewing and marketing of lager beer. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME
THE SOUTH AFRICAN BREWERIES LTD
Formerly
LEXSHELL 159 INVESTMENT HOLDINGS (PTY) LTD, the name having been changed on 1 March 1999.
TRADING NAME
BEER DIVISION
SOFT DRINK DIVISION (incorporating ABI)
PHYSICAL ADDRESS
65 Park Lane
Sandown
SANDTON
Gauteng
POSTAL ADDRESS
P O Box 782178
SANDTON
2146
TELEPHONE NUMBER: 011 881 8111
FAX NUMBER: 011 881 8030
SHAREHOLDERS
100% SABSA HOLDINGS (PTY) LTD, which in turn is owned by S A B INTERNATIONAL FINANCE BV of Rotterdam, Netherlands and which company is ultimately owned by SAB MILLER PLC (formerly SOUTH AFRICAN BREWERIES PLC), quoted on the London Stock Exchange and JSE LTD.
ASSOCIATE COMPANIES
THE SOUTH AFRICAN BREWERIES MALTINGS (PTY)
THE SOUTH AFRICAN BREWERIES HOP FARMS (PTY) LTD
THE SOUTH AFRICAN BREWERIES INTERNATIONAL (PTY) LTD
THE SOUTH AFRICAN BREWERIES BARLEY FARM (PTY) LTD
DIRECTORS
J M KAHN
W J McCAULEY
C D RAPHIRI
M P FANDESO (Non-Executive)
K I HITCHCOCK
I V EVERITT-PENHALE
C A VAN KRALINGEN
M M NGOASHENG
S D BLUEN
I H F BOESENBERG
K D MOROKA
(Non-Executive)
B N NJOBE
G D SAUNDERS
BANKERS
STANDARD BANK, NEDBANK and FIRST NATIONAL BANK throughout South Africa. The subject enjoys substantial facilities at the banks.
DATE REGISTERED
11 December 1998
Registration Certificate Number: 1998/006375/06
It was stated that in 2004 the subject bought the remaining 26% of AMALGAMATED BEVERAGE INDUSTRIES LTD from minority shareholders. This resulted in AMALGAMATED BEVERAGE INDUSTRIES LTD delisting from the JSE to become the Soft Drink division of the subject.
The subject was registered to take over the Beer division of a company that traded under the name of S A BREWERIES LTD, previously THE SOUTH AFRICAN BREWERIES LTD, which was listed on the JSE Securities Exchange South Africa. A restructuring occurred within The South African Breweries Ltd group of companies and a new company was formed to take over the operations of the Beer division. It was stated that S A Breweries Ltd then became dormant.
VAT NUMBER
4160180495
MAJOR OPERATION
Beer Division is the brewing and marketing of lager beer. It was stated that the division has an annual brewing capacity of 3.1 billion litres. The division has a brand port folio of 10 beers and 2 flavoured alcohol drinks.
The Soft Drink Division’s business is the bottling, canning and distribution of carbonated and non-carbonated soft drinks under franchise. The division produces and distributes all the leading brands of the Coca-Cola company, which is situated in Atlanta, USA.
Popular brand names produced by the division includes: Coca-Cola, Fanta, Sprite, Schweppes, Powerade, Appletiser, Valpre, Sparletta, Tab, Krest, Fresca etc.
MAJOR SUPPLIERS
NAMPAK
AFRICAN PRODUCTS
CROWN CORK
CONSOL GLASS
CONCO Swaziland
ILLOVO SUGAR Durban
MAJOR CUSTOMERS OR BUSINESS
SECTORS
Retailers and wholesalers
AREA OF DISTRIBUTION AND SELLING
South Africa
EXPORTS
Worldwide
TOTAL EMPLOYEES
8 800 employees in the group
OTHER PREMISES
It was stated that the Beer division has 41 deports, 10 independent distributors, 2 malting plants and 7 breweries in South Africa. The Soft Drink Division has distribution depots in Pretoria, Midrand, Devland, Rustenburg, Johannesburg, Bedfordview, Vaal, Mafikeng, Klerksdorp, Welkom, Bethlehem, Pietermaritzburg, Richards Bay, Ladysmith, Vryheid, Newcastle, Benrose – Bottling: NAB Durban.
OWNED OR LEASED
The heading premises are reported to be owned by a group company. It was stated that most of the premises are owned by group companies.
AUTHORISED SHARE CAPITAL
R1 000 divided into 1 000 ordinary shares of R1 each
ISSUED SHARE CAPITAL
R100
Full financial information was not forthcoming from respondents at the subject, however, it was stated that the annual turnover is in excess of R16 billion.
AUDITORS
PRICEWATERHOUSECOOPERS
YEAR END
MARCH
INSURANCE BROKERS
GLENRAND MIB
TRADE REFERENCES - JANUARY 2007
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc R 42 000 000 R 38 000 000- 30
days 30 days Excellent
R 42 000 000
2. Old acc R100
000 000 +R100 000 000 15 days 15 days Excellent
From
date of statement
3. 5 yrs+ R 1 000 000
+ R 1 000 000 7 days 7 days Excellent
CURRENT TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Old acc R 40 000 000 R 38 000 000 - 30
days 30 days Very Good
R 40 000 000
2. Old acc R100
000 000 R100 000 000 15 days 15
days Excellent
From
statement
3. Old acc R 1
000 000 R 1 000 000 7
days
7 days Very Good
c/l
CURRENT TRADE REFERENCES
ACCOUNT HIGHEST AVERAGE TERMS PAYMENT EXPERIENCE
OPENED CREDIT CREDIT PATTERN
1. Do not give trade references
2. 11 yrs open R30 000 000 30 days 30
days Excellent
3. 50 yrs open R80 000 000 15 days 15
days Excellent
4. 5 yrs R1
500 000 R 319 000 7 days 7 days Excellent
COMMENTS
This is an established company which forms part of a large international group. Commitments are timeously met and suppliers speak highly of the subject. The subject is considered equal to US$1 000 000 DA. The company is of first class standing and is not considered to enter into any commitments which cannot be met.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)