MTN launches new BEE scheme, Zakhele Futhi
MTN has officially opened its R9.9 billion ‘Zakhele Futhi’ BEE transaction scheme to the market. The scheme takes the form of a public offering where qualifying black participants are invited to subscribe for and beneficially own ordinary shares with a minimum investment of R2,000.
According to MTN, the Zakhele Futhi vehicle is set to last over an eight-year period. The offer opened on Monday 12 September and closes on Friday 21 October. The transaction is expected to kick into gear when its current empowerment vehicle, MTN Zakhele, unwinds on 24 November 2016.
In a statement issued last month, MTN said:
"The mandatory unwinding of MTN Zakhele on 24 November 2016, combined with the creation of the new MTN Zakhele Futhi scheme, will see MTN not only maintain its BEE targets as set out in the Information and Communication Technology Sector Code (the ICT Charter) but also adhere to the B-BBEE Act, allowing MTN to further embed empowerment and transformation in the DNA of its business."
According to MTN, MTN Zakhele Futhi is a special purpose vehicle which will hold approximately 4% equity in the MTN Group. The MTN Zakhele Futhi shares are planned to be issued at R102.80 each.