MTN's Zakhele Shares: How they were allocated

I Don't think this country will ever move forward if race always has to play a role!
 
this deal was just racist and should not have taken place,
 
rpm said:
Cyril Ramaphosa and Phutuma Nhleko got an allocation.
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I am battling to understand why the already wealthy were allowed to benefit and seemingly enrich themselves further? If MTN were truly serious about this, it would have been exclusively to the benefit of those weren't already coining it.
 
What racist rubbish, the fact that wealthy people were allocated shares, and such a large amount of them, shows this deal for the farce that it truly was. Just another track for the gravy train, decorated as a wealth oppurtunity for the poor Joe Soap.
 
One wonders if some of the elitist and regular beneficiaries of BEE deals were excluded, how many "grass roots" subscribers would have got a full allotment? You can bet your bottom dollar that a lot of well connected and Loot_huli House folk were able to afford and received full allotments.
 
I agree with attempts to increase BEE at the lower levels, as opposed to helping rich-elites. However I just want to address a misconception here, you still have to pay for the shares, Nhleko and Ramahposa (and others not mentioned) didn't get free allocations, or discounted allocations, they pay the same price as everyone else. It's a leveraged structure, so individuals can get an enhanced return (and the corresponding higher risk). If you wanted to you could effectively do the same by borrowing against your house and buying MTN shares (it has pretty much the same effect).
 
Is it even legal to descrimate based on skin colour? Can you imagine if someone setup a share deal that targeted only whites? What a fall out there would be!
 
No, discrimination against someone based on their race is prohibited by the constitution. Unless they happen to be a race other than black. Then it's fine. All the white, indian, coloured, or any other people are blerrie agents who are fair game, we all know black people can't be racists lol

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I have hated MTN and their ANC colour scheme since they started out here and ran extremely lame "MTNzania" ads on TV. This just proves that they are racists.
 
It so sad to see how openly racist they can be. What would happen if some major company's had a "Whites only" campaign? Then there would be such a problem and it would be racist but the other way around it's done without even a question? This country will never move on when things like this are going on
 
McT said:
I am battling to understand why the already wealthy were allowed to benefit and seemingly enrich themselves further? If MTN were truly serious about this, it would have been exclusively to the benefit of those weren't already coining it.
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It looks like that's what they did. The leftover shares were allocated to those who applied for more shares.
Due to the oversubscription MTN said it adopted a "bottom-up" approach to allocate MTN Zakhele shares to achieve truly broad-based empowerment and started with applications for the minimum number of MTN Zakhele shares.
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What I really like about these sorts of initiatives is what they do not tell you. Often, when buying these shares you are not allowed to receive dividends for anything up to three years, depending on the deal. So your R2000 is stuck away and you are not receiving returns on it for that period. Think about the average guy on the street, he could invest in with the Post Office in a fixed interest account for up to 2 years and receive 9% interest (the last time a I checked was a while ago). Not much but at least he gets something in return. Or he could take the risk and pray the shares price goes up. When selling these shares you cannot sell them within a certain period, I think for these particular shares it is also in the region of a few years. I also seem to recall a clause stating that you cannot just sell your shares to anyone, other shareholders have preference but it was a while ago I read about this. It is a long term initiative but the average man on the street, to whom R2000 is a considerable whack of his monthly wage or salary, really does not benefit at all. MTN on the other hand receives R2 billion in cash and does not have to pay a cent back for a few years. It is an interest free. When the dividends are eventually paid out, how much will the man receive? R1 on 100 shares, means R100, or a 5% return. Is it really worth the effort? Surely there are better alternatives to benefit the poor than this.

It would be interesting to see the terms and conditions pertaining to this, perhaps someone can do some digging so we can see exactly how much MTN benefits and how badly the guy on the street gets ripped off.
 
hj007 said:
I agree with attempts to increase BEE at the lower levels, as opposed to helping rich-elites. However I just want to address a misconception here, you still have to pay for the shares, Nhleko and Ramahposa (and others not mentioned) didn't get free allocations, or discounted allocations, they pay the same price as everyone else.
Click to expand...

Fixed that "misconception" does not for one minute make it any more ethical for Nhleko and Ramaphosa to 'steal' from the poor in this way - by buying into an allocation intended for broad-based empowerment, they deprived the rightful recipients of a huge allocation. Dozens of smaller applicants then had to settle for less. Absolutely shocking!
 
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