Welkom Yizani, the BBBEE scheme from Naspers/Media24, is set to list its shares on an over the counter (OTC) platform on Monday the 9th of December 2013.
This will allow for initial Welkom Yizani investors to cash out if needs be and will open space for new black investors.
The listing will come to bolster the universe of OTC listed BBBEE schemes. It joins the listing of the Phuthuma Nathi scheme which also came out of the Naspers stable and is invested in pay television operation Multichoice.
Other schemes in this universe include the Sasol Inzalo scheme, Eyomhlaba from African Bank Limited and Ukhamba Holdings from Imperial. Two other schemes are listing in the near future, MTN Zakhele next week and Vodacom’s Yebo Yethu on the 3rd of February 2014.
Welkom Yizani was launched in 2006 and attracted just over 100 000 investors. They came in at R10 per share and were subsidised via Naspers loan funding to the tune of R40 per share. Dividend received by the scheme from Multichoice is first applied on servicing debt and the balance to pay dividend to Welkom Yizani members.
Most recently Welkom Yizani received a dividend of R21.2m for the 2012/13 financial year. According to the 2013 Welkom Yizani annual report the scheme would then direct R17m to service its debt, declare a preference dividend. “The balance of the dividend received by Welkom Yizani, less expenses, will be declared as a dividend to its shareholders.”
“As a result, a dividend of R4,2m (2012: R4,1m) (subject to shareholder approval at the annual general meeting on 2 September 2013) will be declared by Welkom Yizani.” This would translate to about 24.4c per Welkom Yizani shares.
Welkom Yizani is touted as the biggest black economic empowerment (BEE) share offer in the South African print media industry. The underlying asset Media24 owns a string of media operations including national newspapers and online platforms.