MTN Zakhele is de-listing from the Johannesburg Stock Exchange (JSE) this week, as it completes its planned unwinding process for the empowerment scheme, which reached maturity last month.
The company made a statement saying after settling cash amounts on or about 13 December, the listing of MTN Zakhele on the JSE "will be terminated with effect from the commencement of trading on Wednesday 14 December 2016".
In August, MTN announced its new broad-based black economic empowerment (B-BBEE) scheme, MTN Zakhele Futhi, would take over from MTN Zakhele, which would contractually unwind on 24 November 2016.
At the end of last month, MTN said it had raised R2.32 billion via an accelerated bookbuild, by placing over 21 million shares at a price of R110.50 per share. The cash was needed to settle the cash consideration component of the Zakhele scheme as it unwound. Shareholders will each receive close to R59.08 per share for their Zakhele shares - which originally started trading at R20 per share back in 2010.
MTN Zakhele was established in 2010 and originally traded over the counter, before it listed on the JSE's black economic empowerment segment in November 2015. Zakhele Futhi now takes over as the telecoms operator's B-BBEE vehicle.
In November, Zakhele Futhi announced its offering had raised over R1 billion, from more than 81 000 applicants from across SA, when it closed on 28 October. The offer to subscribe for MTN Zakhele Futhi ordinary shares was open to the black public (both individuals and groups) as well as to qualifying MTN Zakhele shareholders who wished to re-invest all or a portion of their investment in MTN Zakhele into the new scheme.
The MTN Zakhele Futhi public offer raised R1.094 billion, and an additional R817 million was raised through re-investing Zakhele shareholders. The total amount of R1.9 billion exceeded MTN's minimum equity raise amount of R1.2 billion, but was below MTN's target equity raise amount of closer to R2.5 billion.
MTN says it will subscribe for the entire equity shortfall - which equates to 27.8 million shares at R20 each, which is almost R557 million.
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