Africa's largest cellular operator, MTN, is still working on its empowerment deal.
The company unwound its previous BEE deal, Newshelf, with the intention of replacing it with a new multibillion-rand deal early last year.
Speaking at the company's results presentation yesterday, outgoing CEO Phuthuma Nhleko said detailed information should be available by the third quarter of the year at the latest.
MTN's empowerment deal was delayed last year because of volatile market conditions that saw share prices across the bourse being hammered as a result of the global recession.
Last year, group executive for corporate affairs Nozipho January-Bardill indicated the empowerment deal was expected to take place in the first half of this year.
Nhleko says the empowerment deal will see no more than 6% of the company's shares being reserved for black shareholders, due to MTN's size. The company has a market capitalisation of R212.6 billion, which would make the deal worth about R12.7 billion.
MTN is anticipated to sell shares to black investors, including black members of the public, staff and previous Newshelf investors. Newshelf was created independently of MTN, in 2002, by Alpine Trust when Transnet sold shares to the company at an average price of R13.90.
Newshelf held 13% of MTN, and its shareholders included black members of the public and top MTN managers. The stake was valued at R22.4 billion, but MTN bought its shares back from Newshelf at an 8% discount.
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