The public offer was launched this morning at the MTN Service Centre in Protea Gardens Mall in Soweto, Johannesburg.
MTN Zakhele shares are being offered at R20 a share. To qualify, investors (Black individuals and groups or Black-owned businesses) are required to purchase a minimum of 100 MTN Zakhele shares which, at R20 per share, will cost R2,000, with the option to buy more shares. There will be no cap per individual investing in MTN Zakhele shares.
“Now is the time to build your future,” said MTN Group’s Executive, Corporate Affairs, Ms Nozipho January-Bardill, sounding a clarion call to Black investors to apply early for MTN Zakhele shares to avoid a last-minute rush. Applications for MTN Zakhele shares close on 14 October 2010.
All valid share applications will be considered. A bottom-up allocation process will be followed should the 80,9 million shares available through the scheme be oversubscribed.
Black applicants who are RICA-compliant customers of MTN will receive preferential allocation of MTN Zakhele shares in the event of an oversubscription. However, no preferential treatment will be given to MTN employees or directors of MTN.
The MTN Zakhele empowerment initiative is envisaged to run for a period lasting six years, the first three of which will be a lock-in period after which participants will be free to trade with other Black investors.
Ms January-Bardill said: “MTN Zakhele is part of MTN’s commitment to provide long-term and sustainable benefits to the country’s BEE participants.”
“We are presenting MTN Zakhele as an offer to the Black public, acting within the letter and the spirit of the Broad-Based Black Economic Empowerment codes and empowerment requirements for South African businesses. We are doing this because we believe that empowerment is an integral part of the MTN business and it is critical for the success of the Group,” she said.
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