The popularity of MTN's Zakhele empowerment offer has resulted in an oversubscription of approximately R1.2 billion, as over 124 000 applicants across the country took advantage of the opportunity.
The offer initially allowed applicants to subscribe for approximately R1.6 billion worth of shares in MTN Zakhele. However, the offer was more than 1.7 times subscribed and raised approximately R2.8 billion.
As a result, some applicants may have to be turned away or will receive a smaller allocation of shares.
The offer stems from an announcement earlier this year in which the JSE-listed mobile operator said 4% of its ordinary shares would be sold as part of a public offering. This would translate into an effective 29% ownership of the South African operations, said MTN.
The operator opened the public share offering on 30 August, to run for six weeks, which ended on 14 October. MTN says the majority of the applications were received in the last few days.
Since the closing of the offer, a detailed process of reconciliation has begun to ensure that due process is followed during the finalisation of all applications.
Due to the over-subscription of the offer, MTN explains that it will have to vary the allocation of shares among prospective applicants. In other words, applicants may possibly not receive the full amount of shares for which they applied.
“Shares will be allocated from the bottom up - that is for the smallest number of shares and with a priority for black people,” explains MTN Group spokesperson Nozipho January-Bardill.
“Black people who are MTN customers and RICA compliant will receive preferential allocation,” she adds.
As stated in the MTN Zakhele prospectus, where the full application cannot be met, the applicant will receive a refund of the relevant amount by electronic funds transfer back into the applicant's specified transactional bank account, with interest calculated from the closing date of 14 October 2010, as soon as practicable after finalisation of the allocation process.
Share
