Shareholders in MTN Group’s long-running black empower scheme known as MTN Zakhele Futhi can look forward to a payout later this month – and a modest profit on their investment.
The scheme, which is in the process of being unwound, will begin distributions to qualifying shareholders on 28 July 2025, the JSE-listed telecommunications group said in a statement on Tuesday.
Shareholders will receive R20/share in cash from the scheme on that date, with a further R2-R3/share expected to flow later – for a total of R22-R23/share, “representing a full return of their original investment and a modest gain”.
This follows the sale of most of Zakhele Futhi’s MTN shares last month ahead of the planned unwinding of the scheme, which was launched in 2016 and designed to broaden South African ownership in MTN.
“The scheme enabled thousands of investors to participate in the company’s growth through accessible shareholding. Supported by additional funding, MTNZF allowed for a larger stake in MTN than shareholder contributions alone could have achieved,” it said.
The scheme delivered a “modest return” to shareholders, “despite the volatility we have seen in the market over the years”, said MTNZF board chair Belinda Mapongwana.
“With improved market conditions in 2025, the MTNZF board was able to proceed with a full unwind of the scheme in a way that protects and preserves value for shareholders.”
JSE delisting
MTN said the proceeds from the sale of MTN shares have been used to settle debts (or provide for outstanding debts), with the remaining funds – after provisions for costs and taxes – being prepared for distribution to participating shareholders.
MTN decided last year to extend the scheme by three years given the poor performance of the group’s share price at the time. Settling then would have made it difficult to settle the scheme’s funding obligations without eroding shareholder value.
“While the financial returns were modest due to market volatility over the years, the scheme succeeded in expanding shareholding among previously excluded South Africans,” said Mapongwana.
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“MTNZF is now essentially a cash-only entity and will no longer operate as an investment vehicle,” MTN said. “Its sole purpose now is to distribute the remaining proceeds to shareholders before being delisted from the JSE and deregistered.” — © 2025 NewsCentral Media
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