The Johannesburg Stock Exchange (JSE) has granted approval for MTN Zakhele to list on the BEE segment of the exchange's main board.
MTN's broad-based black economic empowerment scheme is set to begin trading around 80 million shares on 5 November.
MTN Zakhele announced its plans earlier this year to list on the JSE's BEE segment and move from an over-the-counter (OTC) trader. The company has a market capitalisation of R9 billion and was established by the telecoms giant in 2010 as a vehicle for previously disadvantaged South Africans to invest in the MTN Group.
MTN Zakhele says over 13 million shares valued at more than R1 billion have changed hands since the scheme opened up trade on its OTC share trading platform in November 2013. It owns a 4% stake in MTN.
The company's OTC share trading platform stopped operating on 16 October, and the process for new applications and BEE verification and registration opened on Monday to "help prepare shareholders to trade their MTN Zakhele shares on the JSE".
"In order to make it easier for MTN Zakhele shareholders to access trading on the JSE, MTN Zakhele has established the MTN Zakhele Facilitated Trading Process to enable MTN Zakhele shareholders to hold, buy or sell their shares in the JSE environment," according to the company Web site.
Shareholders using the Facilitated Trading Process will be able to access trading on the JSE through a new platform which can be accessed via a call centre or Web site.
Shares will only be traded on the JSE in uncertificated form and all MTN Zakhele shares currently held in certificated form will be converted into uncertificated form.
MTN Zakhele's current share scheme is set to mature in November 2016 and the company has outlined options for shareholders going forward. A cash settlement has been offered that is equivalent to the value of shareholders' MTN Zakhele ordinary shares at the time of maturity. Otherwise, shareholders can opt for a combination of MTN Group Limited shares and cash.
"The MTN Group Limited board is evaluating alternatives for a new BEE share scheme that may come into effect on the expiry of the MTN Zakhele scheme in November 2016. As part of this new scheme, it is possible, although not yet certain, that holders of MTN Zakhele ordinary shares at the time will be granted the opportunity of a partial reinvestment into the new BEE share scheme on terms yet to be determined."
The company lists the board as being headed by non-executive chairperson Sindisiwe Mabaso-Koyana, along with two non-executive directors: Grant Glenn Gelink and Sonja de Bruyn Sebotsa.
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