Vodacom has offered shareholders with less than 100 shares the opportunity to sell them back to the company, at a profit.
Vodacom is also making an offer to shareholders with between 100 and 500 shares.
The move will tidy up Vodacom's share register and save costs on sending out circulars and other notices to these shareholders.
Vodacom is offering R56.61 a share to buy back the stock. The company calculated this based on the volume weighted average traded price on the JSE over the 10 trading days from 25 January to 5 February, and added in a 5% premium. Its shares closed at R54.60 yesterday.
In addition to making a profit on the current price, sellers will be spared the cost of transacting in the deal, says Vodacom. The deal affects less than 1% of Vodacom's issued share capital.
“We see this as a win-win scenario,” says CFO Rob Shuter. “Minority shareholders who find it difficult and expensive to sell their odd-lot holdings can now do so at a premium price with no brokerage fees.”
In addition, he says, Vodacom “can reduce the substantial costs associated with servicing a large number of small shareholders”.
However, shareholders with fewer than 100 shares need to notify Vodacom, or their broker, by 26 February, if they want to hang onto their stock, otherwise it will be assumed they want to sell.
A general meeting of shareholders will be held on 4 March at Vodacom's Midrand head office to approve the necessary resolutions to implement the offers.
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