The online platform which is to host the trading of MTN Zakhele shares went live today; Friday the 1st of November 2013; spotting a look that promises real action.
MTN Zakhele, the broad based black economic empowerment (BBBEE) scheme facilitated by telecoms giant MTN Group is gearing up for the trading of its shares from the 25th of November 2013.
This will be after the initial investors in the scheme complete a three years lock in period which began on the 24th of November 2010. The scheme attracted about 122000 investors. This number was made of 120000 individual investors and just over 2000 BEE groups. When the trading platform goes live as scheduled, on the 25th of November these investors will get an opportunity to trade, sell if needs be, their shares. Black people and groups who wish to invest in the MTN Zakhele shares will get an opportunity to buy.
The online platform which went live today, alongside a call center channel, allows for all who want to participate in this trading mechanism to register. MTN Zakhele has said that both existing and potential investors need to register.
The mtnz.co.za website was on Friday looking fairly decent. It is clean and simple but not simplistic. The landing page spots three click-through icons at the top, namely Market Information, Key Financial Information and Help. The Key Financial Information icon delivers historical financial data. Most importantly it also delivers independent analysis of MTN Zakhele from three investment firms, UBS, Renaissance Capital, RMB Morgan Stanley. This will be crucial service to MTN Zakhele existing and potential investors.
The Market Information icon is most interesting. It delivers a grid which appears ready to air ‘live’ trading activity (See insert). This includes (Ruling) Price, Movement (percentage), Shares Traded, Value of Shares Traded, Number of Trades, Low Price and High Price. There is more which makes this tool look like a decent thing.
Judging by the number of enquiries, we (ujuh.co.za) have received, about the valuation of MTN Zakhele shares there is some interest mixed with anxiety around trading of these shares. From all the questions received we have compiled a useful Q&A piece which is published separately.
The MTN Zakhele board has declared that the scheme has performed well. The board chairperson was quoted saying 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. “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”.
About market value Gcabashe 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.”