MTN has on Monday proposed the creation of a new, R9.9-billion BEE scheme linked to the maturing of its original transaction in November.
The telecommunications company said in a statement that the 2016 scheme, MTN Zakhele Futhi, would consist of about 4% equity ownership in MTN.
MTN Zakhele, the 2010 scheme, is due to mature on November 24. Following the MTN Zakhele unwind, MTN said it intended to maintain core BEE targets by implementing the new BEE transaction, “designed to offer the opportunity for long-term, sustainable benefits to participants during its proposed eight-year duration”.
An MTN statement added: “It is sized to ensure that, together with the continuing contribution of the MTN Zakhele BEE transaction, if fully subscribed, it immediately translates to an effective indirect black ownership in excess of 30% of MTN’s South African operations.”
– African News Agency (ANA)