Shareholders in the South Africa’s largest telecommunications black economic empowerment scheme, MTN Zakhele, will be able to begin trading shares in November.
Due it larger than expected dividends from the MTN Group, MTN Zakhele has been able to significantly reduce its debt sooner than originally expected.
The scheme was set up in 2010 and on its third year anniversary in November 2013, shareholders in Zakhele will be able to trade amongst themselves and with members of the black public.
Thulani Gcabashe, MTN Zakhele chairman, said: “This (the debt reduction), together with the strong performance of MTN’s share price since the establishment of MTN Zakhele, will greatly benefit shareholders as we come close to the three-year anniversary of the scheme.”
In a bid to reduce its current debt, MTN Zakhele plans to take out less expensive third party funding and then use that money to purchase more shares in the MTN Group.
The ZAR8.2 billion (US$833 million) MTN Zakhele transaction was completed in 2010 and members of the black public were invited to purchase shares at ZAR20 (US$2) each, with a minimum of 100 shares each.
