MTN Zakhele ready, but…
MTN says it still hopes to resume the trading of its R13.8 billion broad based black economic empowerment (BBBEE), MTN Zakhele in January.
The group is awaiting the go-ahead from regulatory authorities, but insists that its systems are ready, having undergone numerous teething issues over the past few months since its initial launch in November (25th) last year.
The group was supposed to resume share trading on 17 December 2013, after trading of ordinary shares was initially suspended two days after its first launch 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.
MTN said it hoped to make an announcement soon.
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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