MTN Zakhele Futhi scheme launched today
#1
Quote:SIKI MGABADELI:  MTN’s R10 billion black economic empowerment scheme opened to the public this morning, and MTN will sell a 4% stake to black individual or group investors and the shares will be held by the MTN Zakhele Futhi Empowerment Scheme. MTN Zakhele Futhi will replace MTN Zakhele, which will be unwound in November.

Let’s speak to the CEO of MTN South Africa, Mteto Nyati. Mteto, thanks so much for your time this evening. Let’s just go back to the rationale for this new scheme that then replaces MTN Zakhele. Why did you decide to go this route?

MTETO NYATI:  Thank you so much, Siki for having me. The MTN Zakhele scheme that has been operational since 2010 is coming to an end on November 14. As a company, we saw some of the success of that scheme and how we managed to get people who in the past had not had the opportunity to make investments, and now saw they are part and parcel of a scheme like this one. We are talking about financial inclusion.

With that we needed to do something going forward, and we wanted to broaden the base beyond the base that we had in the past. So that is really the thinking – to make sure that we bring new people into the scheme and maintain our 4% shareholding of blacks within the country.

SIKI MGABADELI:  And overall your indirect ownership – what level would it stay at now when you look at BEE as a whole as MTN South Africa?

MTETO NYATI:  That is another big driver for our company because in South Africa it is key for us to meet the requirements of both the ICT charter and BEE. We are talking about over 30%. If it is fully subscribed, we’ll be talking about over 30% black shareholding for MTN South Africa.

SIKI MGABADELI:  Let’s talk about MTN Zakhele shareholders then. Do they all have to migrate over to the new scheme? What does it mean for those existing investors?

MTETO NYATI:  For the existing investors have got an opportunity to reinvest into MTN Zakhele Futhi. We are encouraging them to do so. But at the same time we are keen to have new black shareholders because ultimately we want to broaden this empowerment, we want to get as many blacks who have not participated in schemes like this – as many as possible. So that is really the drive there – to new investors and also existing shareholders.

SIKI MGABADELI:  You are not going to be providing funding to investors this time around, I understand.

MTETO NYATI:  No, we are not. But the way we have priced the MTN Zakhele Futhi share, it can be bought for R20, and the minimum number of shares that can be bought is 500. So what it means is that to participate in this scheme you will need at least R2 000. We believe that that is low enough to attract as many new black shareholders as possible. At the same time, it’s not too low to actually create an admin problem for the scheme.

SIKI MGABADELI:  You’ve also proposed the introduction of a new employee share ownership plan for MTN staff, and it excludes, I understand, directors and management. Tell us about that.

MTETO NYATI:  Yes, it’s really important. Some of the criticism that has been laid on schemes like these is that management ends up having a conflict of interest – when they introduce schemes like this at the end of the day it is more about enriching themselves. We said no, this is not what we are going to do, and that’s really not the intention. The intention is to [bring in] as many people as possible who have not had an opportunity to participate. Hence we are only opening it up to our employees of MTN.

SIKI MGABADELI:  Thanks for your time, Mteto Nyati.


source: http://www.moneyweb.co.za/moneyweb-radio...hed-today/
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#2
(09-13-2016, 01:30 PM)Spreadsheet Ranger Wrote:
Quote:MTETO NYATI:  No, we are not. But the way we have priced the MTN Zakhele Futhi share, it can be bought for R20, and the minimum number of shares that can be bought is 500. So what it means is that to participate in this scheme you will need at least R2 000. We believe that that is low enough to attract as many new black shareholders as possible. At the same time, it’s not too low to actually create an admin problem for the scheme.

Is this the same as the existing MTN Zakhele share? Which now is trading at R62.50, how can this "Mteto Nyati" say that they can be bought for R20? What's the catch?
Buy for R20, sell for R62.50... I'll buy some through the tea-lady at work then!
JSE Finance Forum Attachment - Filename: zakhele.JPG   

#3
Did some googling, turns out Multichoice has their own BEE exclusive scheme "Phuthuma Nathi"
http://businesstech.co.za/news/media/128...ee-scheme/
https://www.phuthuma.co.za/FAQ.aspx

From the article:
"The Phuthuma Nathi 2 share price closed at R148 per share on 24 June 2016. So, if a shareholder bought Phuthuma Nathi 2 shares in 2007 for R1,000 at R10 per share, the shares would be worth R14,800 on 24 June 2016.

In addition, the shareholder would have received dividends amounting to R5,418 for their R1,000 investment to date.
This means a shareholder who invested R1,000 in Phuthuma Nathi in 2007 would have made a total of R20,218 – 20 times over the past nine years"

#4
Interesting indeed
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#5
turns out it's not the same as the Existing share, "MTN Zakhele". "MTN Zakhele Futhi" is something new, with different prices.

Why create a new one, if the existing one hasn't grown over the last year, and MTN's price keeps on falling






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