MTN Group has kicked off its second round of its black economic empowerment share scheme, dubbed MTN Zakhele Futhi, as Africa's telecommunications giant aims to raise close to R10-billion.
Each investor will be required to fork out at least R2 000 to acquire a minimum of 100 shares.
The company has made a maximum of 123 416 819 MTN Zakhele Futhi shares available at R20 each.
"MTN Zakhele shareholders electing the MTN Zakhele re-investment offer will only be entitled to do so in respect of a minimum of 50 MTN Zakhele shares," MTN said in an e-mail response to Sowetan's enquiry yesterday.
The MTN shares "will be issued at R102.80, a 20% discount to the 10-day volume weighted average price (VWAP) per MTN share on 17 August 2016 of R128.50".
"No maximum subscription or election limit has been set for any one applicant, and applicants can therefore apply for as many MTN Zakhele Futhi shares as are available in the MTN Zakhele offer.
"However, maximum shareholding limit of 15% applies to shareholdings in MTN Zakhele Futhi.
"Accordingly, no allocations of MTN Zakhele Futhi shares above the maximum shareholding limit may be made by MTN Zakhele Futhi without MTN's prior written consent," the company said.
The share scheme comes as MTN is in the process of unwinding its first BEE share scheme, which was initially offered at R20 per share in 2010 to 124 000 investors and rocketed to R77 a share last week Wednesday, a return of 400% and a compounded annual growth of about 26%.
"The mandatory unwinding of MTN Zakhele on 24 November 2016, combined with the creation of the new MTN Zakhele Futhi scheme, will see MTN ... maintain its BEE targets as set out in the Information and Communication Technology Sector Code (the ICT Charter)..."
The share scheme comes as MTN and Nigerian authorities agreed in June that the company will over three years pay $1.671- billion (R22.7-billion) at the official exchange rate and $902-million (R12.3-billion) at the Lagos Parallel Market Rate to the federal government of Nigeria.
However, when MTN was asked if this was the reason for the latest share scheme, it said no as the money to settle the fine would only come from MTN Nigeria.
sibanyonim@sowetan.co.za
MTN launches another share scheme
MTN Group has kicked off its second round of its black economic empowerment share scheme, dubbed MTN Zakhele Futhi, as Africa's telecommunications giant aims to raise close to R10-billion.
Each investor will be required to fork out at least R2 000 to acquire a minimum of 100 shares.
The company has made a maximum of 123 416 819 MTN Zakhele Futhi shares available at R20 each.
"MTN Zakhele shareholders electing the MTN Zakhele re-investment offer will only be entitled to do so in respect of a minimum of 50 MTN Zakhele shares," MTN said in an e-mail response to Sowetan's enquiry yesterday.
The MTN shares "will be issued at R102.80, a 20% discount to the 10-day volume weighted average price (VWAP) per MTN share on 17 August 2016 of R128.50".
"No maximum subscription or election limit has been set for any one applicant, and applicants can therefore apply for as many MTN Zakhele Futhi shares as are available in the MTN Zakhele offer.
"However, maximum shareholding limit of 15% applies to shareholdings in MTN Zakhele Futhi.
"Accordingly, no allocations of MTN Zakhele Futhi shares above the maximum shareholding limit may be made by MTN Zakhele Futhi without MTN's prior written consent," the company said.
The share scheme comes as MTN is in the process of unwinding its first BEE share scheme, which was initially offered at R20 per share in 2010 to 124 000 investors and rocketed to R77 a share last week Wednesday, a return of 400% and a compounded annual growth of about 26%.
"The mandatory unwinding of MTN Zakhele on 24 November 2016, combined with the creation of the new MTN Zakhele Futhi scheme, will see MTN ... maintain its BEE targets as set out in the Information and Communication Technology Sector Code (the ICT Charter)..."
The share scheme comes as MTN and Nigerian authorities agreed in June that the company will over three years pay $1.671- billion (R22.7-billion) at the official exchange rate and $902-million (R12.3-billion) at the Lagos Parallel Market Rate to the federal government of Nigeria.
However, when MTN was asked if this was the reason for the latest share scheme, it said no as the money to settle the fine would only come from MTN Nigeria.
sibanyonim@sowetan.co.za
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