The share price of Vodacom BBBEE scheme, Yebo Yethu, seems to have settled, for now, around R50 per share which can be described as a comfortable level for both sellers (initial investors) and buyers.
Initial investors who came in at R25 per share in 2008 are realising 100% gain when selling at R50 per share. There appears to be ample space for further gain in the value of Yebo Yethu which can deliver good returns for new investors.
The Vodacom Yebo Yethu scheme opened for trading on the 3rd of February 2014. On the first day of trading the share closed at R40.10. It has since gained to close at R50.12 on Friday the 14th of February 2014 and has touched a high of R56.10.
Space for upward movement comes from the view of Yebo Yethu net asset value. Yebo Yethu net asset value is estimated around R94 per share by SBG Securities. However SBG has noted that the share will suffer a liquidity discount and has arrived at a figure of R56/share.
More value is likely to be created in the scheme as it pays down funding debt and realise more growth from the underlying asset being Vodacom SA.
Yebo Yethu is invested in Vodacom South Africa as part of a broader BBBEE consortium. It is important to note that Yebo Yethu is not invested in the JSE listed Vodacom Group. The scheme is invested in Vodacom South Africa which is a subsidiary of Vodacom Group. Vodacom South Africa accounts for about 80% of Vodacom Group revenue. Despite this connection there is no co-relationship between the share price of Yebo Yethu and the share price of the JSE listed Vodacom Group.