MTN Zakhele chairperson, Thulani Gcabashe, has promised to bring back a robust trading platform for the R13.8 billion BBBEE scheme. The trading platform is set for re-launch on the 29th of January 2014.
Gcabashe made the pledge in a statement issued on Friday announcing the relaunch of the trading platform which was suspended in November last year. The collapse of the ttrading platform was followed by vague and unmet promises of bringing the platform back up. This has dampened excitement on what was promising to be an exciting story of mass based black economic empowerment (BEE). At previous official communication, MTN Zakhele administrators did promise to have the trading platform back up in January 2014.
“We sincerely regret the delays and the inconvenience which users have experienced. We are confident that the updated system is robust and will be able to accommodate higher volumes of activity upon resumption of trading on Wednesday,” said Gcabashe.
The statement noted that trading in MTN Zakhele ordinary shares will resume on 29 January 2014, via the online platform and call centre.
“Trading was initially launched on 25 November 2013, but was suspended shortly thereafter to enhance the platform’s capacity. The trading platform was thoroughly tested following these enhancements. Additionally, the capacity of the call centre has also been increased to handle a higher volume of calls.”
“Following system enhancements and testing in December 2013, MTN Zakhele was required to engage with the regulatory authorities in order to apprise them of the upgraded system and results of testing. MTN Zakhele has now received the requisite approval from the regulatory authorities for trading to resume.”
MTN Zakhele owns 4% of telecoms giant MTN Group after the group facilitated a BBBEE deal that attracted about 120000 investors in 2010. MTN Zakhele shares became due for trading in November last year after three years of existence.
Investors paid R20 a piece to participate in the BBBEE scheme and were subsidised via loan funding to gain indirect exposure to the JSE listed MTN Group. Since launch of the BBBEE scheme in November 2010, MTN Group shares have gained significantly and the company has provided good dividend which has benefited the MTN Zakhele shares.
When the MTN Zakhele trading platform was launched on the 25th of November 2013, the BBBEE shares opened at levels around R85 per share and many trades were struck at between R80 and R90 which makes for a good return for investors who came in at R20. The MTN Zakhele share was trading at R80 when the trading platform was shut on the 27th of November 2013. All eyes will be on what price the share will track when the trading platform is re-launched.