MTN shares over-subscribed, but everyone will get some

The National Empowerment Fund’s Asonge issue of MTN shares has been over-subscribed.

By - August 21, 2007 Share on LinkedIn
MTN shares over-subscribed, but everyone will get some

The scheme invited offers for about 11.7-million MTN shares.

Small investors who signed-up for the R2000 minimum purchase will get their full allocation of about 25 MTN shares, but people who offered for the maximum R50 000 worth of shares will probably be limited to an investment of R46000, the fund's spokesman, Moemise Motsepe, said.

Institutions that signed-up for the R100000 maximum will also probably get their allocations cut back.

The extent to which the Asonge offer has been over-subscribed is not yet known because the applications received by Friday's deadline are still being tallied.

The final allocation of shares will depend on MTN's closing price on August 30. But it is clear that more black South Africans have signed up for the Asonge deal than can be accommodated, Motsepe said.

Under the Asonge deal, black investors are able to buy MTN shares for R79.61 each ? a 20percent discount to MTN's R99.51 closing price when the offer opened on July 23.

The final price might be even lower if MTN shares are below R99.51 when the JSE closes at the end of this month.

The cellphone network operator's stock crashed, along with most others on the JSE last week, but looked as if it were well on its way to making a recovery by yesterday.

The government made the MTN shares available to blacks through the Post Office.

 

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Which mobile operator do you think offers the best value-for-money data products?

View Results

Loading ... Loading ...

More News

Big DStv channel changes coming

DStv logo

MultiChoice has announced that it is cancelling some channels, moving several channels to cheaper packages and adding more HD channels.

DStv Explora 2 decoder launched

DStv Explora Decoder Fibre Optic

MultiChoice launched an updated version of its Explora decoder.

Cell C launches aggressively priced LTE products

Cell C LTE

Cell C has unveiled five new promotional contract LTE packages, with prices dipping below 1c per MB on some products.

Biggest DDoS attack in history: 620Gbps

DDOS

KrebsOnSecurity was the target of the largest distributed denial-of-service (DDoS) attack ever seen by Akamai.

Free MyBroadband Newsletter
×