MTN launches R9.9-billion BEE share scheme

MTN has launched a R9.9-billion BEE transaction called MTN Zakhele Futhi.

MTN said the transaction will allow historically-disadvantaged individuals to participate in the “economic mainstream”.

The R9.9-billion black economic empowerment transaction is expected to launch on 12 September 2016 and will close on 21 October 2016. This comes as MTN Zakhele unwinds on 24 November 2016.

“The proposed MTN Zakhele Futhi scheme will take the form of a public offering where qualifying black participants will be invited to subscribe for and beneficially own ordinary shares in MTN Zakhele Futhi – with a minimum investment amount of R2,000,” said MTN.

MTN Zakhele Futhi is a special purpose vehicle, which will hold approximately 4% equity in MTN Group.

Share price

“The MTN shares, to be issued to MTN Zakhele Futhi, will be issued at R102.80, a 20% discount to the 10-day volume weighted average price per MTN share on 17 August 2016 of R128.50,” said MTN.

The scheme is scheduled to run for eight years.

MTN has also proposed a new employee share ownership plan for staff, excluding directors and management.

The new scheme will not require equity, and MTN will issue approximately 0.1% of its issued share capital to be held in a trust for the benefit of employees.

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MTN launches R9.9-billion BEE share scheme