MTN BEE deal: R20 per share explained

[hloni]

They should just change it to (PEE) Poor Economic Empowerment, So everyone can be happy.

 

[BBSA]

So in other words, there is nothing stopping whites from applying for these BEE shares? You could just tell the teller at the SAPO that you are coloured. How is he going to prove that you're not, or how are you going to prove that you're not white?

Would you be lying if you said you were coloured? All South African's are coloured - we are each a colour of the rainbow nation.

.... and ALL South African are Africans.

I'm going to get a nice tan and submit my application at my nearest Post office, I would love to see how they going to proof I'm not colored.

 

[Jola]

Why all the 'reverse racism' shyte?

Racism is racism, it's not frikken directional.

+1

 

[DiboTwoSteps]

is this truly not a fat cat deal?

The jury is still out whether Zakhele MTN truly offers a different kind of BEE deal. While it may not benefit the 'usual BEE suspects', it is likely to create at least three new fat cats who already sit on the MTN board. How come?

With the Asonge BEE deal Black People could get their hands direclty on MTN shares (direct ownership of shares and the promises of immediate dividends). With the MTN Zakhele deal Black People get shares in MTN Zakhele (a special purpose vehicle which is less than a year old) and not MTN.

While dividends paid out by MTN Zakhele are linked to the MTN share price on the JSE, there are other costs attached to MTN Zakhele that will determine the size of the dividends and when these may be paid out. These factors include paying for the financing costs of BIC Pref Shares and Notional Vendor Finance; the total expenses incurred by MTN Zakhele in the day-to-day running of MTN Zakhele including salaries and travel for directors; until its financing has been settled and until after the BIC Discharge Date and after the tax liabilities of MTN Zakhele has been met.

In practice this can mean that Black People who invested in MTN Zakhele can wait for years if not decades for any dividends if they decide not to sell their shares.

Why is MTN structuring the Zahkele deal like this and in such a different way that Asonge? Who is likely to benefit?

It seems that in the case of the MTN Zakhele deal it will be the three directors of MTN Zakhele...and who are they? All three of them already sit on the MTN board which means this is really a way for MTN to empower three individuals who already sit on their board. Nice inside track neh?

This raises a number of question about this deal. Will these three directors resign from the MTN board and focus on their work as directors for MTN Zakhele? Moreover, how can MTN give this BEE deal to a company that is less than one year old and has never produced a financial statement? Will the money used from ordinary Black Investors not be used to run this company while the large investors' loans are repaid? How can Black People and Black Groups trust this company - MTN Zakhele - with their investments?

 

[Necuno]

if you are not black why just not go and invest your money some-place else with better returns ? :erm:

 

[iCubed.Saajid]

The jury is still out whether Zakhele MTN truly offers a different kind of BEE deal. While it may not benefit the 'usual BEE suspects', it is likely to create at least three new fat cats who already sit on the MTN board. How come?

With the Asonge BEE deal Black People could get their hands direclty on MTN shares (direct ownership of shares and the promises of immediate dividends). With the MTN Zakhele deal Black People get shares in MTN Zakhele (a special purpose vehicle which is less than a year old) and not MTN.

While dividends paid out by MTN Zakhele are linked to the MTN share price on the JSE, there are other costs attached to MTN Zakhele that will determine the size of the dividends and when these may be paid out. These factors include paying for the financing costs of BIC Pref Shares and Notional Vendor Finance; the total expenses incurred by MTN Zakhele in the day-to-day running of MTN Zakhele including salaries and travel for directors; until its financing has been settled and until after the BIC Discharge Date and after the tax liabilities of MTN Zakhele has been met.

In practice this can mean that Black People who invested in MTN Zakhele can wait for years if not decades for any dividends if they decide not to sell their shares.

Why is MTN structuring the Zahkele deal like this and in such a different way that Asonge? Who is likely to benefit?

It seems that in the case of the MTN Zakhele deal it will be the three directors of MTN Zakhele...and who are they? All three of them already sit on the MTN board which means this is really a way for MTN to empower three individuals who already sit on their board. Nice inside track neh?

This raises a number of question about this deal. Will these three directors resign from the MTN board and focus on their work as directors for MTN Zakhele? Moreover, how can MTN give this BEE deal to a company that is less than one year old and has never produced a financial statement? Will the money used from ordinary Black Investors not be used to run this company while the large investors' loans are repaid? How can Black People and Black Groups trust this company - MTN Zakhele - with their investments?

I like your analysis and the questions you raise. I've also been wondering about this, and whether it is worthwhile investing in...

 

[Emmanuelr]

Why Not end on 15/Oct/2010 instaed of 14/Oct/2010

Its unfair for those who earns salary on 15th of each month because you started the sale from 30/Aug/2010 to end 14/Oct/2010 which means those who earn salary on 30th of each month are given double/twice opportunities to buy MTN Zakhele Shares whiles people who earns on 15th of each month got only a single/one chance.

This will deny many targeted poor/middle salary/income earners and without any limit to the maximum purcahse that a person can buy as done by other BEE shares sales in the past this will land this opprtunities into the hands of the few rich BEE people who have amased wealth under political or corrupt means.

Something is not right or fair.

 

[frailwings]

In some countries it's called positive discrimination, and it will never ever work.

 

[RogueTr00per]

Relax ppl... The shares are gonna be so oversubscribed anyways so most ppl will just get given the minimum quota regardless of how much they apply for! I don't think anyone's lives r gonna be changed much one way or the other by qualifying or not qualifying to purchase Zakhele shares.

As stated previously, it will be the fat cats benefiting most from the deal