Business3.02.2014

Vodacom YeboYethu trading starts

By Staff Writer

Vodacom says that limited trading in the shares of its R7.5 billion BEE scheme Yebo Yethu, has commenced.

It follows the re-launch of MTN‘s BEE scheme, MTN Zakhele, on Wednesday (29 January), following several delays due to technical issues amid high demand.

According to Vodacom, YeboYethu was designed with the express intention of providing true grassroots empowerment, and through this scheme, over 100,000 people bought a stake in Vodacom SA.

“As of today, these shareholders can now trade their shares via the over-the-counter (OTC) platform operated by Equity Express,” the operator said.

Vodacom Group CEO Shameel Joosub said: “We’re proud of what YeboYethu has achieved in terms of true broad-based empowerment. This scheme has already paid out almost R65 million in dividends and now small shareholders across South Africa can either increase their stake or unlock the value of their investment.”

Vodacom stressed that YeboYethu shares relate to Vodacom SA only, and are distinct from Vodacom Group shares which trade on the JSE Limited.

Zarina Bassa, chairman of YeboYethu said: “We started the verification process for YeboYethu shareholders back in November so that they are ready to trade straight away. We’ve also registered more than 2,000 buyers so far, with interest growing daily.”

“We partnered with an experienced trading platform that handles high volume accounts for several other major BEE schemes, and we’ve also conducted extensive stress testing on the trading system, so we’re aiming for a smooth start.”

“Our main focus from here is to spread the word to make sure that all YeboYethu shareholders are aware of the options available to them, and also to empower shareholders with educational information on how to trade.”

“We see YeboYethu as a long-term investment and we’d obviously like to keep existing shareholders on-board, but as of today those who do want to trade have the option open.”

Yebo Yethu, which owns 3.44% of Vodacom, was initiated by the telco in June 2008, with an initial value of R2.2 billion.

The scheme operates by paying dividends directly to shareholders (after deducting running costs).

Dividends reached a reported R20.2 million in 2013, compared to R6.5-million in Yebo Yethu’s first financial year.

Notional funding is serviced by deducting a portion of dividends declared by Vodacom before the balance is paid over to Yebo Yethu.