Response to MTN Zakhele BEE Public Offer exceeds expectations
Response to the MTN Zakhele Offer has significantly exceeded expectations. In terms of the MTN Zakhele offer, which closed at 16H00 on 14 October 2010, an invitation was made to the Black public (individuals and groups) to subscribe for approximately R1,6 billion worth of shares in MTN Zakhele.
The offer was more than 1.7 times subscribed and raised approximately R2.8 billion from more than 124,000 applicants from across South Africa. The majority of the applications were received in the last few days and the smooth running of the process bears testament to the South African Post Office collection process.
MTN sought to achieve a broad-based transaction that benefits all qualifying South Africans and was evidenced by the applications received, with more than 95% of applications received from individuals.
MTN Group President and CEO, Phuthuma Nhleko said: “The goal of MTN was to create a truly broad-based empowerment transaction that would allow ordinary qualifying South Africans to become shareholders in MTN (through MTN Zakhele). The success of the MTN Zakhele Offer has been overwhelming and represents the first step by qualifying South Africans towards building their future with MTN Zakhele Shares”.
Since the closing of the offer, a detailed process of reconciliation has begun to ensure that due process is followed during the finalisation of all applications. MTN believes that broad-based BEE participation is important to its future success, and in order to ensure this is achieved, the Group has designed an allocation model that will ensure fair treatment of all applicants with a priority for individuals.
As stated in the MTN Zakhele prospectus, where the full application cannot be met, the applicant will receive a refund of the relevant amount by electronic funds transfer back into the applicant’s specified transactional bank account with interest calculated from the closing date of 14 October 2010, as soon as practicable after finalisation of the allocation process.
MTN Zakhele is committed to running an efficient allocation process and will endeavour to advise all applicants of their allocation as soon as possible. MTN Zakhele will send all new shareholders a "welcome pack" that will contain a specific share allocation notice, as well as information relating to MTN Zakhele, rights and responsibilities as new shareholders, and other important administrative information.
Please call the MTN Call Centre on 083 173 and choose option 7 if you have any questions about the status of your application.
MTN would like to thank every qualifying South African for taking this opportunity to build their future with MTN Zakhele Shares.
This article was originally posted on Africa ICT & Telecom Network