Value of Zakhele "mtn" shares?

[N1sh]

So I've purchased R10 000 worth of Zakhele "Mtn" shares back in 2010, but cant seem to work out their current worth.

Im basically trying to see which direction my investment is heading in, to decide how much I can invest in the Alan Grey Equity fund.

Have read a few articles saying how they aren't really Mtn shares but if I'm going to recieve a good payout when i'm able to sell who cares whether they're Mtn or not.

Maybe others who have purchased these shares can help me out.

I'm not really clued up on investments and finance so any other advice would be most welcome.

Thanks for any responces.

[cbrunsdonza]

I think they will only have value and be considered an investment after the empowerment period is over so they should still only be "worth" what you paid.

[SinghDude]

Iv put 15 k in Zakhele.

Should MTN continue to offer good returns for shareholders I don't see why Zakhele shares won't be good value when the lock down period is over.

MTN , despite the political scandal in IRAN, still have billions in cash reserves... Current dividends were in excess of R4/share.

Last year a special dividend was paid.

Telecommunications stock still represent good value on the JSE, bar Telkom.

[N1sh]

Yes I understand they are only ellegible for trading after 3 years of purchase.

Im just trying to work out if I will actually recieve a good payout when sold, I mean logically it would be quite hard to make a loss on a R120 share purchased at R20.

[j4ck455]

http://www.mtnzakhele.co.za/faq.html

When will I start earning dividends?
As MTN Zakhele is a newly incorporated company, it has no trading or dividend history. It is not the intention of MTN Zakhele to declare dividends in respect of the MTN Zakhele Shares until its financing has been settled.

Furthermore, MTN Zakhele is not permitted to do so until after the BIC Discharge Date. Until the BIC Discharge Date, the dividend income earned on the MTN Shares held by MTN Zakhele will be used firstly to pay permitted operational fees, costs and expenses and tax liabilities of MTN Zakhele and thereafter to meet the obligations of MTN Zakhele to the BIC Investors under the Transaction Documents and MTN Zakhele under the BIC Pref Shares. Any balance of such dividend income earned on the MTN Shares held by MTN Zakhele will be used to acquire additional MTN Shares and correspondingly reduce the NVF Balance.

After the BIC Discharge Date, until the NVF Call Option is fully discharged, the dividend income earned on the MTN Shares held by MTN Zakhele will be used firstly to pay permitted operational expenses and liabilities, then any loans under the Subordinated Loan Agreement/s.

It sounds like any dividends are going into the pockets of the directors until next year when this pyramid scheme will probably implode.

[phiber]

Bought the Sasol equivalent of this, they send statements but to work out 'market value' of this stuff is so difficult. I've decided rather to just invest into stock on the JSE. Online brokers make this very easy.

[rendan]

Yes I understand they are only ellegible for trading after 3 years of purchase.

Im just trying to work out if I will actually recieve a good payout when sold, I mean logically it would be quite hard to make a loss on a R120 share purchased at R20.

Have a look at this article, I think you're investment is doing just fine and patience for the full 6 years is important. Its better to leave your money in there than investing in any unit trust fund.
http://www.moneyweb.co.za/moneyweb-i...ipled-in-value

It's in your best interest not to get any dividends, its used to pay off the debt accrued from buying the shares. You got the shares at R20 but since the actual MTN shares are worth R120, they used mostly debt and a small MTN donation to fund it.

[Speedster]

Have a look at this article, I think you're investment is doing just fine and patience for the full 6 years is important. Its better to leave your money in there than investing in any unit trust fund.
http://www.moneyweb.co.za/moneyweb-i...ipled-in-value

It's in your best interest not to get any dividends, its used to pay off the debt accrued from buying the shares. You got the shares at R20 but since the actual MTN shares are worth R120, they used mostly debt and a small MTN donation to fund it.

The R20 didn't buy a full share though. It's effectively a type of unit trust which only has MTN shares.

[steven muthan]

I have purchased 100 share in 2010 and had not received any feed back to date

[Hendrix]

I assume only MTN employees are/were eligible to buy them?
If so, try get more info from your HR dept?

[MickeyD]

I assume only MTN employees are/were eligible to buy them?
If so, try get more info from your HR dept?

wrong assumption

[Hendrix]

wrong assumption

Lol, true
I did a quick google, and they were sold at R20 each, and the latest price I got from Sept 2012 is R75, so its done very well.

[Flexus]

Checkout www.sasolinzalotrading.com for values and to trade Sasol Inzalo shares.

[IzZzy]

Typical arrangement.

It uses an SPV structure (separate company) to acquire the relevant MTN shares, and what you hold are the shares in the SPV. The SPV needs to pay off its vendor financing first before being in a position to declare dividends.