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MTN Zakhele prepares for JSE debut

File picture: Siphiwe Sibeko

File picture: Siphiwe Sibeko

Published Sep 21, 2015

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Johannesburg - MTN’s black economic empowerment scheme, MTN Zakhele, is set to list on the Johannesburg Stock Exchange on November 5.

The scheme, which raised R2.78 billion when it was launched in 2010, has previously traded over the counter. The local bourse launched its BEE segment in 2011 to promote economic equality.

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Only shares that companies have indicated are BEE complaint may be listed.

MTN Zakhele’s debut will be the first since the bourse revamped the rules in July, it says in a statement. 2014 marked the first full year of trading in MTN Zakhele shares via the MTN Zakhele share trading platform.

The empowerment scheme owns 4 percent of MTN SA and currently has a market capitalisation of R9 billion. More than 13 million shares valued at more than R1 billion have changed hands since the opening of trade on the OTC share trading platform in November 2013.

Trade over the counter will cease and shareholders will be migrated to the JSE.

Chairperson Sindi Mabaso-Koyana explains “there will be a brief disruption in trading prior to listing from October 16 to November 5 to enable, amongst other things, migration of shareholder data”.

All shareholders will need to be verified and register on the new transaction platform, a process that will open on October 26.

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Most of the scheme’s shareholders are individuals. In the 2014 year, it received R836 million in dividend income from MTN Group, up from R658 million received in 2013.

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