Investors in MTN Zakhele will from the 25th of November 2013 be able to trade their shares in the three years old empowerment scheme facilitated by mobile phone giant MTN Group.
This also means that black people or groups who missed the opportunity to participate in the MTN empowerment scheme have a second chance to invest.
MTN Zakhele administrators said existing shareholders and eligible Black People or Black Groups need to register online or through the Call Centre from 1 November 2013, in order to be able to buy and/or sell shares from 25 November 2013.
The MTN Zakhele scheme has 120000 investors who bought MTN Group shares in 2010 at a discounted price and via a leveraged instrument. In total the scheme earned about 4% of MTN Group shares after raising R8.1bn.
Investors paid R20 a piece to participate in the scheme and were then subsidised via loan funding. Since launch in November 2012 MTN shares have gained significantly and the company has provided good dividend which means investors are in the money and can cash out.
MTN Zakhele came with a three years lock in which expires in November. However the scheme has a six years tenure which means investors will be only allowed to trade with other black investors.
MTN Zakhele Chairman, Thulani Gcabashe said, “The MTN Zakhele scheme is progressing well and we are looking forward to the shares being traded. We are calling on all existing and potential eligible investors, who want to trade in MTN Zakhele ordinary shares, to register and verify their personal information starting on 1 November 2013 when registration and verification opens”.
Gcabashe said due to the strong performance of the MTN share price and dividends received, the scheme has been able to reduce certain of its debt obligations more quickly than anticipated, and that is good news for investors.
He added that “The success of MTN Zakhele is dependent on the performance of the MTN share price, as well as the ongoing receipt of dividends to service its funding commitments. The implementation of the refinancing proposed at the July 2013 AGM is expected to improve the total returns to shareholders, as less funds will be required to service the more expensive notional vendor funding owed by MTN Zakhele to MTN.”
Cgabashe said as the value of the MTN Zakhele ordinary shares will depend on, amongst other things, demand on the trading platform – awareness and investor education are important factors for success.
“We have a number of initiatives in place to facilitate an efficient trading platform and provide assistance to all current and potential investors. Our trading call centre can be reached on 083 123 6869 and shareholders can visit www.mtnz.co.za for information. Shareholder education and registration seminars will be held at community centres around the country during November 2013,” said Gcabashe.
Here follows important Information supplied by MTN Zakhele:
The call centre, website and investor seminars are the channels through which shareholders and potential investors can register and access detailed information. Shareholders should note that registration will not take place via MTN and Post Office outlets where the investors collected and submitted their original applications, respectively, three years ago.
Registration via the MTN Zakhele call centre: 083 123 6869
Registration via the MTN Zakhele website: www.mtnz.co.za
All MTN Zakhele ordinary shareholders are invited to attend Shareholder Education and registration seminars. Shareholders can arrive at any time during the hours specified below for assistance with registration, which is required to be able to trade in MTN Zakhele ordinary shares. Experts will be available to answer questions regarding trading. Specific Shareholder Education presentations will take place at 10am, 1pm and 4pm each day at the following locations:
· Saturday, 2 November – Gateway International Airport, Gateway Road, Polokwane from 9am to 6pm
· Wednesday, 6 November – Moses Mabhida Stadium, 44 Isaiah Ntshangase Road, Morningside, Durban from 9am to 6pm
· Saturday, 9 November – Ditsong National Museum of Cultural History Conference Centre, 149 Visagie Street, Pretoria from 9am to 6pm
· Wednesday, 13 November – Nangoza Jebe Hall (formerly Centenary Hall), Ntshekisa Street, New Brighton, Port Elizabeth from 9am to 6pm
· Saturday, 16 November – Heideveld Community Centre, Heideveld Road, Heideveld, Cape Town from 9am to 6pm
· Thursday, 21 November 2013 – Sci-Bono Discovery Centre, corner Miriam Makeba & President Streets, Newtown, Johannesburg from 9am to 6pm