MTN Has Announced R8.1bn BEE Plan
Telecoms company shares rose 94c on the news that its launching one of the countries biggest BEE offers called "MTN Zahkele" MTN says its Board has approved a proposed 8.1 billion rand broad-based black economic empowerment (BEE) transaction and employee share ownership plan by the requisite majority of votes at a general meeting.
The group claims it is the largest empowerment transaction in the telecoms sector in South Africa to date. The transaction consists of up to 4% equity ownership in MTN, after its initial implementation was delayed due to "severe constraints in financial markets," it said.
The BEE transaction has been called "MTN Zakhele" and will give MTN South Africa an additional effective black ownership of up to 29.1%, the group said. MTN said on Friday that the special resolutions would be lodged for registration with the Companies and Intellectual Property Registration Office in due course.
The transaction is envisaged to run for a period lasting 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. In addition to the MTN BEE Transaction, MTN said it would also issue approximately 0.1% of its issued ordinary share capital on a fully diluted basis to an employee share ownership plan (ESOP), for the benefit of eligible MTN employees.