Enormous demand for shares in MTN’s Zakhele black economic empowerment deal has resulted in the offer being oversubscribed.
The offer, which closed on 14 October, involves the sale of about R1,6bn worth of shares in the scheme. According to MTN, the offer is more than 1,7 times subscribed and raised R2,8bn from more than 124 000 applicants.
“The majority of the applications were received in the last few days [of the offer],” MTN says in a statement.
More than 95% of the applications were from individuals.
The group says it has now begun a reconciliation process to ensure due process is followed during the finalisation of all applications. “MTN believes that broad-based black participation is important to its future success, and in order to ensure this is achieved it has designed an allocation model that will ensure fair treatment of all applicants with a priority for individuals.”
Where the full application cannot be met, applicants will receive a refund of the relevant amount “as soon as practicable after finalisation of the allocation process”.
“MTN Zakhele is committed to running an efficient allocation process and will endeavour to advise all applicants of their allocation as soon as possible,” the group says. — Staff reporter, TechCentral