Fri Oct 21 22:26:58 SAST 2016

Asonge investors 'will all get shares'

By unknown | Oct 02, 2007 | COMMENTS [ 0 ]

Staff Reporter

Staff Reporter

To fully satisfy all 87000 applications for government's Asonge deal, additional MTN shares have been made available by government.

Demand for the shares from black investors queuing at post offices exceeded the initial amount made available by 13percent.

Government, via the National Empowerment Fund (NEF), allowed black investors to buy MTN shares for R73,84 each, a 20percent discount to the cellphone network's closing price on Asonge's deadline of August 16.

MTN's shares were yesterday trading at nearly R105 each, so Asonge investors have already gained 42percent.

Investors who hold the MTN ordinary shares for the full investment period of two years will receive one bonus share for every 10 MTN shares held.

"Asonge has been a truly historic achievement," said Ronnie Ntuli, chairman of the NEF Board of Trustees.

"We are delighted that women, youth, people with disability and all provinces heeded the call to save and invest, resulting in a substantial 13percent oversubscription of the offer.

"The NEF is extremely satisfied with the outcome of the share allocation. The value of Asonge applications was R890 million, and the current market value of these shares is R1,3billion. This scheme has given people who previously had no real access to the economy a share in a prized South African corporation with a significant appreciation in investment already," said Ntuli.


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