Kilimanjaro Investments Limited
June 1998
As a result of the recent acquisition of Suncrush Limited by Amalgamated
Beverage Industries Limited (ABI), the KBH Group has acquired from ABI
its 20,6% holding in Kilimanjaro Investments Limited. This shareholding,
together with shares acquired in the market, has resulted in the KBH
Group owning approximately 29% of Kilimanjaro, which constitutes KBH
as Kilimanjaro's largest shareholder.
KBH is an Investment Holding Company owned by the five Kunene Brothers.
KBH's principal investment is its 70% interest in Kunene Finance Company
(Proprietary) Limited ("KFC"). KFC has a number of subsidiary
and associate Companies (the "Group") whose principal interests
include Coca-Cola bottling and distribution through the Group's 64%
interest in Coca-Cola Bottling Mpumalanga (Proprietary) Limited ("CCBM")
and telecommunications, defence electronics and information technology
through its 100% interest in Grintek Limited's convertible debentures
and its 34,9% interest in the listed technology investment holding company,
Kunene Technology Limited. The 30% minority shareholding in KFC is held
by four of South Africa's largest financial institutions.
The Kunene Brothers' involvement in the Beverage business dates back
to 1978 when they commenced the informal wholesaling and distribution
of Coca-Cola products in the East Rand Townships. This business then
rapidly developed and in 1991 they were formally appointed Coca-Cola
distributors for TJC Trading (Proprietary) Limited in the Vosloorus
area, a business which they still operate today.
Their status as the largest independent distributors of Coca-Cola enabled
the brothers to negotiate, in September 1994, the acquisition from The
Coca-Cola Company of a controlling interest in CCBM. The balance of
the shares in CCBM are held by the original founder of the business
and Peninsula Beverage Company (Proprietary) Limited who operate the
Coca-Cola franchise in the Western Cape.
Mr K S (Keith) Kunene is the chairman of KBH and is also chairman of
CCBM and a director of Coca-Cola SABCO (Proprietary) Limited, the anchor
bottler for Southern and East Africa. Mr MWZ (Zanosi) Kunene is managing
director of CCBM, a position he has held since July 1995. The KBH Group
is well positioned within the Coca-Cola system to expand its bottling
interests and will be proposing to Kilimanjaro shareholders a merger
between CCBM and Kilimanjaro, which should position the enlarged Kilimanjaro
to grow and invest further within the Coca-Cola bottling system in South
Africa.
