Participation in Vodacom's public share offer, which closed last week Thursday, has "proven to be very popular".
Vodacom chief communications officer Dot Field says the offer of 14.4 million shares in the telecommunications giant has been oversubscribed. However, the total tally of applications made to the company has not yet been finalised.
"We are currently processing the applications and expect to be able to provide more details within the next few weeks," says Field. The YeboYetho public share offer opened on 30 July, as part of the company's R7.5 billion black economic empowerment venture.
Applicants were given the opportunity to buy a minimum of 100 shares (at R2 500) and a maximum of 1.44 million shares (at R360 million) in Vodacom. However, the share deal also comes with certain restrictions.
Shareholders who have purchased through the YeboYethu offer are obliged to hold their stake for a minimum of five years. However, the shares held by YeboYethu will not be traded during that time.
After five years, sale of the shares will be permitted; however, it will be restricted to black ownership only. After 10 years, there will no longer be any restriction on the sale and purchase of the shares.
Vodacom has made provision for oversubscription of the share offer, in its prospectus. It states: "If more than 14.4 million shares are applied for, Vodacom SA will decide how to allocate the shares. Preference will be given to Vodacom SA black business partners, black women and black groups with the highest percentage black ownership."
According to the prospectus, if applicants are allocated fewer shares than they had asked for, they will be refunded the excess amount of money, with interest.
The share deal has had white-owned organisations, from small businesses to the trade union Solidarity, up in arms. The union has challenged Vodacom on the sale of shares exclusively to black people and black businesses.
Responding to Solidarity's accusations, Vodacom said the YeboYethu public shares offer is a means to achieving "acceptable BEE credentials".
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