The tragic story of more than 100 000 investors in Nasper’s BBBEE scheme Welkom Yizani continues with no solution in sight. Welkom Yizani shares were trading at R10.01 on the Friday, the 14th of February 2014.
The seven years old BBBEE investment scheme opened for trading on the 9th of December 2013. The share price has settled around R10.00 per share. This was a huge disappointment for investors who paid in R10.00 per share to participate in the scheme. This means investors who sold at R10 and some at levels below R10.00 have lost money in the scheme.
Many investors are seeing red and have been calling for an intervention of sought to infuse financial sensibility into the scheme but there is no sign of such an intervention happening.
Naspers has remained silent about the performance of the Yebo Yethu scheme. Government, in particular the DTI, has communicated a view that it has no legal ground to make an intervention.
Welkom Yizani is invested in Media24, a Nasper’s subsidiary with bias towards South African based print media assets. The BBBEE scheme was launched with a purchase of 15% of Media24 shares in 2006.
Black investors were invited to pay in R10.00 per Welkom Yizani shares and were subsidised to the tune of R40 per share via loan funding. The deal was structured to earn equity as the debt is paid down from Media24 dividend. Some dividend has gone into paying down the debt over the years which is said to have lifted Welkom Yizani net asset value to about R25.00 per share. But the market, the limited trading platform, has so far failed to recognise the net asset value.