Johnnic Holdings is unbundling about R7 billion worth of MTN shares to its shareholders, who will receive just over three MTN shares for every Johnnic share they own.
Johnnic, which has a 36% stake in MTN, is to unbundle about 31.9% of MTN`s issued share capital.
The telecommunications, media and entertainment group says the rationale is to unlock most of the discount at which Johnnic shares trade to its underlying net asset value and to enable Johnnic shareholders to hold their shares directly in the MTN Group.
The group is to retain 40 million MTN shares to cover a corporate guarantee in respect of Durban Add-Ventures in the amount of R300 million, continuing working capital requirements, potential funding requirements for Suncoast Casino & Entertainment World and the possible tax liabilities resulting from non-resident shareholders holding more than 5% of the issued share capital of Johnnic.
The group says: "To the extent that there are any non-resident shareholders individually holding more than 5% of the issued share capital of Johnnic on the record date, Johnnic will not qualify for the various tax exemptions in respect of that portion of MTN Group shares to be distributed to such non-resident shareholders.
"If there is one or more such non-resident shareholder on the record date, Johnnic intends to sell so many of MTN Group shares which it currently holds as is necessary to pay such resulting tax liability."
Shareholders registered as such on 20 June will qualify to receive about 3.17 MTN shares for every Johnnic share they hold.
The Johnnic share, which rose R1.50 to R49.50 on the JSE yesterday, was up another 50c at R50 in early morning trade today.
Share
