Distell's broad-based black economic empowerment deal will cost about R870m (US$137m), but the new partners will be locked into an eight to 10 year agreement before any dividends are realised.

Distell has created a wholly owned operating subsidiary, South African Distilleries and Wines, through which the deal was routed. WIP Beverages will finance the venture through issuing preference shares to Distell.

The black consortium comprises a Distell Employee Share Ownership Plan (ESOP), which will have a 45% stake, WIPHOLD, an investment group dedicated to women's empowerment, with a 40% share, and the Community Social Investment Trust the remaining 15%. The Trust will represent disadvantaged communities in which Distell operates.

This deal will not affect Distell's three main partners, KWV, South African Breweries and Remgro, each of which have a 30% share. The other 10% is available on the JSE Securities Exchange.

The deal is expected to be ratified at Distell's AGM on 12 October.

WIPHOLD will appoint two directors to the Distell board and also invest in R5m of its own money directly into Distell.