MTN Zakhele suffers more delays
Trading in MTN Zakhele shares, which was set to relaunch today, remains closed, and will only start up again some time in January, the group announced.
This follows numerous delays and failures to launch trading of the R13.8 billion broad based black economic empowerment (BBBEE) scheme, since 25 November.
The group was supposed to resume share trading today (17 December) after trading of ordinary shares was suspended two days after launch (25 November) due to technical issues.
Trading was suspended after the “unprecedented interest” in buying and selling the shares crashed the systems.
Trading was initially due to re-start on Monday 2 December; however, MTN admitted that the level of interest had far exceeded expectations with the system not designed for such volumes.
According to the group, MTN Zakhele is still required to engage with regulatory bodies to apprise them of the changes and sufficient time is needed to review the changes to go ahead with trading.
Thulani Gcabashe, MTN Zakhele’s chairman, said in a statement this weekend: “A robust system is now in place that will cope with the volumes of trade we expect and ensure a smooth trading process in January.”
MTN Zakhele owns 4% of MTN Group Limited’s (MTN) total issued ordinary shares, which are owned by approximately 120,000 black investors.
By the end of the first day of trade, about 93,000 MTN Zakhele shares with a total value of R8.1 million changed hands. MTN Zakhele closed at R84 per share.
On the second day, over 100,000 shares to the value of R7.8 million were traded. The MTN Zakhele shares closed at R80 per share on Tuesday, 26 November.
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