MTN Zakhele BEE shares to list on the JSE in November

·28 Oct 2015

MTN’s BEE share scheme, MTN Zakhele is preparing to start trading on the main board of the JSE in November.

The shares will be listed on the BEE segment of the main board and trading will commence on 5 November, the group said.

MTN Zakhele was established in 2010 as a ring fenced vehicle for previously disadvantaged South Africans to invest in MTN Group.

MTN Zakhele, with a market capitalisation of R9 billion, will be the first broad-based black economic empowerment scheme to list on the JSE’s BEE Segment, it said.

The JSE has granted approval for just over 80 million ordinary Zakhele shares to be issued, and they will be traded in uncertificated form.

All current shares held in certificated form will be converted to uncertificated form in a bulk dematerialisation.

MTN Zakhele has made options available to shareholders for when the current MTN Zakhele share scheme matures in November 2016.

In the first option, shareholders can get a cash settlement equivalent to the value of their MTN Zakhele ordinary shares at the time.

Another option would be a combination of MTN Group Limited shares and cash settlement equivalent to the value of their MTN Zakhele ordinary shares at the time.

After the JSE listing, shareholders will continue to be able to submit buy and sell orders through the existing methods, being the MTN Zakhele Call Centre and the Website, it said.

The MTN board said it is evaluating alternatives for a new BEE share scheme that may come into effect on the expiry of the MTN Zakhele scheme in November 2016.

“As part of this new scheme, it is possible, although not yet certain, that holders of MTN Zakhele ordinary shares at the time will be granted the opportunity of a partial reinvestment into the new BEE share scheme on terms yet to be determined,” it said.