Should I sell my MTN Zakhele shares? Here is your indicator

Many people invested in the MTN Zakhele BBBEE scheme are faced with a critical question as is evident from the many comments we have received on this platform, ujuh.co.za. Should I sell my shares?

In truth, no one can answer this question better than you, the holder of MTN Zakhele shares. That is because you know your financial situation better. This is to say the answer must be dictated by your financial position. Speaking to a financial advisor might help.

Having said that; there is one sacred rule that has stood the test of time in the investment world. It is called patience. Off course your investment patience must be well guided. In this case, you must take a view on the prospects of MTN Group, the underlying asset in the MTN Zakhele BBBEE scheme. There is no shortage of professional analysis of MTN Group prospects. Most analysis points to a solid foundation and a stable future for the company which has grown to become the largest telecoms operator in the African continent and with considerable representation in part of Asia.

Remember that MTN Zakhele’s performance is derived from two primary factors, the performance of the MTN Group share price on the JSE and the dividend flow from the very same MTN Group. These two factors dictate MTN Zakhele’s net asset value (NAV). NAV, assets minus liabilities, indicates market value.

A view produced by investment firm Renaissance Capital is most helpful for the question under consideration. The report says “We believe MTN Zakhele shareholders would like to know whether to hold their shares or perhaps sell them and instead acquire common MTN shares”

The report adds that “Compared with an issue price of R20/share, MTN Zakhele’s NAV advanced to R96.67/share by end-2012, or implied capital appreciation of 182%.”

On a comparative basis, the MTN share has appreciated by 71%. At this stage, our preference would be for MTN Zakhele shareholders to retain their shares for the duration of the Empowerment Period (which ends on 24 November 2016).”

The Renaissance Capital analysis added that “Holders of Zakhele shares have clearly seen substantial compound growth in the underlying value of the share since the scheme’s inception.”

However, said the report, we believe the majority of this growth has already been locked in.”

The Renaissance Capital analysis confronts another pertinent question. The question is to this effect. Should I sell my MTN Zakhele shares and instead buy MTN Group shares?

The Renaissance Capital analysis said the swap consideration depends on the expected total return over the empowerment period, between November 2013 and November 2016. In simple terms the analysis suggest that it is better to hold on to MTN Zakhele shares because money invested there is likely to produce a better total return as compared to money moved from MTN Zakhele into MTN Group.

Here is the view in Renaissance Capital owns words. “In terms of P/E ratio, MTN is currently trading at a 6.3% premium to its 10-year historical average. We calculate a potential return of 40% based on a P/E-type valuation and an exit P/E of 13.0x.”

Over the same period, our estimated return on an MTN Zakhele share is 83%. Based on these assumptions, our preference is therefore that, rather than swapping into MTN commons post 25 November, current MTN Zakhele shareholders should participate in the expected growth and NAV of the MTN Zakhele share between now and November 2016.”

news@ujuh.co.za

  • Advice me on how to sell my shares, all the steps necessarily needed to ensure that i have all the money in my account as quickly as possible. Please give all the details

    1. This answer was taken from mtnz.co.za FAQS. We assume you have registered, if not go to mtnz.co.za and navigate towards FAQS.
      “Once the selling process is complete, you can select the following payment options to have the money transferred to your bank account (in which case the money will be in your bank account within 3 to 5 days) or;You can indicate that the money be kept in your trading account if you want buy more shares in future; and If there is no activity on your trading account after 30 days your money will be automatically refunded to your bank account”

  • Zakhele shares are the way to go.

  • What impact will the overselling of MTN Zakhele shares have on the value of the shares? I own some shares in MTN Zakhele and would further like to know if holding onto them for a further two or three years will be a wise move?

  • Stick to the fight, and protect us from evil.!

  • when is the closing date for trading and registration

  • Why haven’t received a cent for my invesment in the mtn zakhele,why f tha’s going to heppen when will that be.

  • What are the shares worth now and I would like to know how do you find out how many shares you bought? Thank You

  • I want to register & sell my share. My numbers is 074 929 5303 & my name is Sharon & would like to get the response .THANKS

  • where do I enquire
    about the latest report of my shares?

  • How to change my banking details

  • I filled the details changing form changing my banking details after I sold my shares. Just wanted to check what will happen to the money if it’s deposited into the old account that’s not active now. I also want to know how long will it take for the account to be changed.

  • My work & cell number have changed.do I still fill in the forms

  • my mother passed away in 2013 and has shares with MTN. i would like to know how do I participate in the scheme since I am the sole heir to her estate?

  • What about now?

  • mahala prince hlongwane

    I want to know when will my contact be changed cause I have submitted the forms So that I can able to know how many shares I have

  • lindiwe mazibuko

    I would like yo sel my shares hw do I go about. I bought them for my minor son

  • I would also like to sell my shares, how do go about it?

  • siybonga sithole I will like to know how to get into my account couse I’ve already registerd for trading my shares but i’m straggling to login plz help

  • Hi, i would like to sell my mtn shares what should i do?

  • Matshidiso Mokawana

    Hi I have changed my address and married. Meaning I’m using a new surname. How do I get to update my details? And how do I know how much I got of my shares

  • I wanna ask how do I sell my shares in order to get my money I invested for five years?

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