Ramaphosa takes R187m bet on MTN - TechCentral

Ramaphosa takes R187m bet on MTN

Shanduka Group, controlled by leading black businessman Cyril Ramaphosa, has acquired a vast economic interest in the telecommunications group.

Shanduka has been allotted R187m worth of shares in MTN Zakhele, the group’s new empowerment offer.

And Ramaphosa is not the only MTN director taking a big bet of the group’s future growth.

Despite the fact that he’s due to leave MTN in a few months, outgoing president and CEO Phuthuma Nhleko has acquired R40,2m worth of Zakhele shares.

According to MTN, black staff and directors of MTN were entitled to participate in the empowerment offer on “precisely the same terms as members of the black public”.

MTN on Friday said that it had raised R2,8bn through Zakhele. It received applications from more than 120 000 individuals. The scheme was 1,7 times oversubscribed.

A total of 80,9m Zakhele shares were offered to members of the black public at R20/share.

MTN says one of its primary objectives of the offer was to achieve “truly broad-based empowerment”. All valid applications for subscription amounts between R2 000 and R25 000 were accepted in full.

In respect of valid applications for subscription amounts in excess of R25 000, applicants will be allocated that amount, plus a percentage of the balance of shares applied for.

About 94% of all applicants received all of the MTN Zakhele shares they applied for. Refunds will be paid to applicants who were not successful, or only partly successful.  — Duncan McLeod, TechCentral

4 Comments

  1. Somehow I don’t see how Phutuma can qualify for this empowerment deal… capitalism making the fat cows fatter and the poor stay poor.

  2. How is it possible that Phutuma can be allocated R40,2m worth of shares when it was supposed to be a bottom up allocation? Surely, if my maths is right, he would have been one of the largest subscriber and if the deal was over subsribed by 70% he should have been excluded?
    mmm … this sound WRONG!
    I take it the the JSE would not do anything about this …

  3. this is highway robbery. i thought that this deal was meant to empower the poor, not further enrich the super-rich.
    i only applied for a few shres and didn’;t get my full allocation. ramaphosa gets millions. this is absolutely disgusting. mtn should be ashamed of themselves. they should explain this to the public.