MTN’s black empowerment scheme to list on JSE in November

File: The JSE started the week with a third consecutive session of losses on Monday.

File: The JSE started the week with a third consecutive session of losses on Monday.

JOHANNESBURG - MTN Zakhele Futhi, special purpose empowerment vehicle of Africa’s largest mobile operator, will list on the JSE on 25 November, the group said on Monday.

The recently amended scheme will allow trading by black participants in the scheme’s 4 percent stake in MTN, and will comprise about 123.4 million ordinary issued shares.

MTN’s previous scheme, MTN Zakhele, listed on the JSE in 2015, but delisted in the next year as the scheme was wound up.

MTN recently announced changes to Zakhele Futhi that includes the scheme having the right to to appoint its own chair and nominate one of its members to the MTN board.

READ: JSE suspends all forms of trading in MTN shares and stocks

In July, the broad-based BEE commission found the scheme did not meet the requirements of the Empowerment Act and suggested several remedies, including the right for the scheme to appoint its own board.

MTN also made other changes include dropping a requirement that the board chair of MTN Zakhele Futhi be a director of MTN.

Previously, at least one of the two MTN directors had to be present at an MTN Zakhele Futhi board meeting for a quorum to be constituted, but this requirement had been dropped.

MTN said it has either already implemented or is in the process of implementing these voluntary amendments.

MTN’s share was down 0.87 percent to R95.97 in morning trading.

Source
IRESS