Vodacom's public share offer YeboYethu - the operator's R7.5 billion black economic empowerment (BEE) venture - has opened up for limited trading in shares.
The company announced this morning that, five years down the line from the launch of YeboYethu, shareholders can now trade their shares via the over-the-counter platform, operated by Equity Express.
"YeboYethu was designed with the express intention of providing true grassroots empowerment, and through this scheme over 100 000 people bought a stake in Vodacom SA," says the operator.
Vodacom CEO Shameel Joosub says the BEE scheme has already paid out almost R65 million in dividends. Now, he adds, small shareholders across SA "can either increase their stake or unlock the value of their investment".
Vodacom says it is important to note YeboYethu shares relate to Vodacom SA only, and are distinct from Vodacom Group shares, which trade on the Johannesburg Stock Exchange. "The price of YeboYethu shares is not directly linked to the price of Vodacom Group shares."
YeboYethu chair Zarina Bassa says the group started the verification process for YeboYethu shareholders back in November so that they would be ready to trade straight away. "We've also registered more than 2 000 buyers so far, with interest growing daily.
"We partnered with an experienced trading platform that handles high-volume accounts for several other major BEE schemes, and we've also conducted extensive stress testing on the trading system, so we're aiming for a smooth start."
Bassa says YeboYethu's main focus is to make sure all YeboYethu shareholders are aware of the options available to them, and to empower shareholders with educational information on how to trade. "We see YeboYethu as a long-term investment and we'd obviously like to keep existing shareholders on-board, but as of today those who do want to trade have the option open."
Information relating to the trading process - as well as who is eligible to trade - is available on Vodacom's YeboYethu Web site.
Vodacom says all trading is done on a "willing seller" and "willing buyer" principle until both parties get the price they are looking for. "The first seller to place a 'sell offer' is matched with the first buyer who puts in a 'buy bid' equal to, or higher than, the seller's offer. Trading carries administration charges and is subject to tax.
MTN scheme
Vodacom rival MTN last week announced stock in its Zakhele empowerment scheme would again change hands.
This followed the November suspension of trade in the stock due to a system crash, and came a month-and-a-half after the shares were set to go live again.
Trading initially launched on 25 November, but was suspended a few days later. During the two days that trade did take place, almost 200 000 shares - worth a total of R15.9 million - were traded. The stock closed at R80 on 26 November.
Ordinary shares in MTN Zakhele are owned by about 120 000 black investors, who were locked in for a three-year period after buying in at R20 a share in November 2010.
The scheme collectively owns 4% of the MTN Group and has been touted as the largest empowerment deal in the telecoms sector.
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