MTN has extended the closing date for investor participation in its proposed R9.9 billion broad-based empowerment transaction, MTN Zakhele Futhi, for an extra week. The offer will now close on 28 October rather than 21 October as previously planned.
This was due to a notable increase in applications from current MTN Zakhele shareholders over the past week. MTN says the extension will allow "MTN Zakhele shareholders, who wish to elect MTN Zakhele Futhi ordinary shares, additional time to complete their re-investment offer election process".
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.
"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.
Last week, shareholders voted to approve the telco's new special purpose vehicle, which will hold approximately 4% equity in the MTN group, as well as a planned employee share ownership plan.
MTN says it plans to allocate MTN Zakhele Futhi ordinary shares on 23 November.
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