Johannesburg - MTN will launch a new black economic empowerment scheme as Zakhele is set to unwind in November as it reaches maturity.
MTN’s new empowerment offering is apparently set to be worth some R9.9 million, making it among the biggest empowerment deals in SA.
The previous scheme, which owns 4 percent of MTN’s share capital, was established in 2010 and listed on the JSE’s empowerment board last November. It last traded at R66, a 3.65 percent drop on its opening price.
MTN Zakhele has 124 00 black investors, and its value has increased nearly fourfold from R20 a share at inception in 2010, to about R77 a share when the share price closed on August 17. That equates to a total return of about 400 percent and a compounded annual growth of about 26 percent.
When it unwinds, it has to pay back all loans and then distribute the residual value to shareholders after allowing for costs.
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MTN says, as Zakhele unwinds, it will launch empowerment scheme MTN Zakhele Futhi – which includes a reinvestment option for current MTN Zakhele shareholders.
MTN Zakhele shareholders can opt to get paid out, swap their shares for MTN stock or reinvest in the new scheme.
MTN Zakhele Futhi will be realised through a public offering and inviting MTN Zakhele shareholders to reinvest as well as raiding finance. The new platform will run for eight years and various trading restrictions will apply. during that period.
MTN Zakhele Futhi shares may become listed on a recognised stock exchange on or after the third anniversary of the issue date.
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