Share

MTN approves R8.1bn BEE deal

Johannesburg - Telecommunications company MTN Group [JSE:MTN] announced on Friday that its board had approved a proposed R8.1bn broad-based black economic empowerment (BEE) transaction and employee share ownership plan by the requisite majority of votes at a general meeting.
   
The group claimed 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 - MTN Zakhele - would 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.
   
MTN shares gained 94 cents at R119.94 on the JSE shortly before 16:00 on Friday.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders