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MTN's Zakhele Futhi officially on offer

By , ITWeb
South Africa , 12 Sep 2016

MTN's Zakhele Futhi officially on offer

Mobile operator MTN has announced that the offer period for its new Broad-Based Black Economic Empowerment (B-BBEE) scheme MTN Zakhele Futhi opened this morning at 9am and will close at 4pm on 21 October 2016.

According to MTN the R9.9 million transaction replaces MTN Zakhele, the now former special purpose empowerment vehicle, which contractually unwinds on 24 November, and will help it maintain its B-BEEE targets, in line with the ICT Charter and B-BBEE Act.

Under the new transaction black South African individuals and groups are invited to apply for up to 123, 416, 819 ordinary shares in MTN Zakhele Futhi (RF) Limited at R20.00 per share. The minimum investment amount required to apply for shares is R2000.

"The new MTN empowerment scheme affords qualifying individuals and groups the opportunity to apply for shares in MTN Zakhele Futhi (RF) Limited. In turn, MTN Zakhele Futhi (RF) Limited proposes to acquire shares in MTN at an effective 20% discount to the transaction price. The MTN Zakhele Futhi scheme is potentially valued at up to R9.9 billion, and is envisaged to hold approximately 4% equity in MTN Group," reads a statement from the operator.

Speaking at the launch of the MTN Zakhele Futhi Offer in Johannesburg today, MTN South Africa CEO Mteto Nyati said MTN is fundamentally committed to transformation and empowerment in South Africa. "The MTN Zakhele Futhi offer is designed to provide the black public with an opportunity for exposure to MTN's geographically diversified operations, earnings and growth markets".

Nyati added that MTN's transformation journey spans more than two decades during which the company has sought to benefit hundreds of thousands of black South Africans and groups through empowerment initiatives such as the MTN Asonge and MTN Zakhele BEE schemes.

These schemes, explained Nyati, have augmented MTN's other on-going transformation programmes in the areas of enterprise development, preferential procurement and employment equity – including the various employee share schemes.

Another employee share scheme has also been proposed for 2016, said MTN.

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