MTN Zakhele offer R1,2bn oversubscribed - TechCentral

MTN Zakhele offer R1,2bn oversubscribed

Advertising hoarding outside MTN's head office in Johannesburg

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

4 Comments

  1. A disgraceful example of the ANC’s racist and economic genocidal tactics against a minority ethnic group. Shame on the business community for not speaking out and condemning this practice in the 21st century, SHAME ON YOU ALL!

  2. I Still say this is Apartheid in reverse – why only for “the previously disadvantaged’?. Thought Apartheid was over – clearly not!!!!!.

  3. Don’t worry. With MWeb hitting Telkom, MTN and Vodacom off guard on the peering issue those shares may not only be over subscribed but also over priced even with the discount. I can only see the issue becoming worse for them as more ISPs join the fight. Either they give in and lose money or they don’t and lose money. I’ll laugh my ass off when the “poor” black South Africans with their Mercedes Benzes end up losing money because of their ricist government’s discriminatory policies.

  4. Shame on you all for not appreciating that redressing the balance of those dark years has really only just begun, obviously you did not profit enough under the old regime! Get real and embrace the Rainbow nation, instead of staying stuck in the past.

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