MTN announces R8.1bn BEE deal

2010-07-15 11:33

MTN today announced a new proposed broad-based black economic

empowerment (BEE) transaction of R8.1 billion to be executed through its South

African local listing.

The company’s president and CEO Phuthuma Nhleko said in a statement

the transaction would broaden MTN South Africa’s effective BEE ownership through

a public offer to black individuals and groups to beyond 30%, when combined with

the company’s previous BEE initiatives.

Nhleko said: “BEE is integral to the ethos of MTN, and MTN believes

that broad-based BEE participation is important to its future success as a

group.”

MTN would invite black South Africans to acquire up to 4% equity

ownership in the company through the transaction, called MTN Zakhele.

MTN said: “It will give MTN South Africa an additional effective

black ownership of up to 29.1%, thus making the new MTN BEE transaction the

largest empowerment deal in South Africa’s telecommunications sector to

date.”

Though the MTN Zakhele scheme would be executed through MTN’s South

African listing, it would give these investors exposure to MTN’s diversified

operations and growth markets.

The offer was expected to open to the public on August 30. A

prospectus with details of the offer would be available from MTN retail stores

and Post Office outlets around the country from then.

The transaction was envisaged to run for six years, the first three

of which would be a lock-in period after which participants would be free to

trade with other BEE investors.

MTN said qualifying investors would be invited to subscribe for

ordinary shares at a price of R20 per share. Investors would be required to buy

a minimum of 100 shares. No cap would be placed on the number of shares sold to

individuals.


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