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MTN shareholders approve BEE scheme

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 10 Oct 2016
Over 99% of MTN shareholders voted to approve various transactions relating to the 2016 MTN BEE transaction.
Over 99% of MTN shareholders voted to approve various transactions relating to the 2016 MTN BEE transaction.

MTN shareholders have voted to approve the telco's proposed R9.9 billion broad-based empowerment transaction, MTN Zakhele Futhi, and a planned employee share ownership plan.

This after MTN held a general meeting on Friday, when over 99% of shareholders voted to approve various transactions relating to the 2016 MTN BEE transaction.

In August, MTN announced the new broad-based black economic empowerment scheme, MTN Zakhele Futhi, which will essentially take over when current BEE scheme, MTN Zakhele, contractually unwinds on 24 November.

Over 99.9% of shareholders voted in favour of the MTN Zakhele specific repurchase and the wind-up co-specific repurchase to facilitate the MTN Zakhele integrated unwind in November, as well as future specific repurchases in terms of the 2016 MTN BEE transaction.

MTN Zakhele Futhi is a special purpose vehicle, which will hold approximately 4% equity in the MTN group.

"This new transaction, together with the continuing contribution of the MTN Zakhele transaction, will translate to an effective indirect 'see-through' black ownership in excess of 30% of MTN's South African operations," group executive chairman Phuthuma Nhleko said at the time.

MTN Zakhele Futhi's offer period kicked off on 12 September and will close at 16h00 on 21 October.

Shareholders at the general meeting also voted overwhelmingly in favour of sanctioning of financial assistance in connection with the 2016 employee share ownership plan, as well as initial specific issue of shares to MTN Zakhele Futhi for cash.

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