Investors in the 10 years old Vodacom’s Broad Based Black Economic Empowerment (B-BBEE) scheme, Yebo Yethu, are in line to realise significant gains and an opportunity to participate in a new R17.5 billion empowerment transaction of the JSE listed telecommunication giant.
With Yebo Yethu set to mature in October, Vodacom announced this week the finalisation plans for the transaction established in 2008 and valued at R7.5 billion back then. It allowed ordinary black South African’s to acquire a stake in Vodacom South Africa, along side other B-BBEE partners, Royal Bafokeng and Thebe Investment Corporation.
It attracted about 100 000 ordinary black investors. Those who staayed on about 80 000 are now set to receive a significant cash dividend pay-out and acquire a shareholding in the JSE listed Vodacom Group.
The gains to be realised by YeboYethu shareholders include are:
- A cash dividend paid of R1.56bn or R67 per share, which is 2.7 times their original investment;
- A R7.5bn of net value which is 6.7 times the original capital invested by the B-BBEE shareholders;
- Exposure to Vodacom Group at the JSE listed level which includes international operations
- Established in 2008, YeboYethu issued 14.4 million ordinary shares at R25.00 each and attracted about 102 000 qualifying black investors.
While issued in 2008 for R25.00 per share, the Yebo Yethu shares started trading at R55.50 on the JSE’s BEE board on 11 August 2016. They were quoted at R84,50 per share on Friday, 8 June 2018. This means they have recorded growth of more than 200% from the 2008 entry price of R25.00.
The new R17.5 billion B-BBEE transaction will have a 10 year term.
YeboYethu chairperson Zarina Bassa said these are exciting times for YeboYethu shareholders. “The board is unanimously supportive of the transaction as it creates immediate value for the more than 82 800 black investors through the cash dividend and importantly, an opportunity to reinvest on favourable terms in the Vodacom Group.”
Vodacom Group CEO Shameel Joosub, said the transaction proves Vodacom’s commitment to economic transformation. “The R17.5 billion BEE transaction provides an ideal opportunity for Vodacom to partner with our existing B-BBEE partners and Vodacom staff in facilitating a further empowerment ownership transaction, this time at the Vodacom Group level.”