Limited trading has begun in Vodacom’s five-year-old, R7,5bn black economic empowerment scheme, YeboYethu, the mobile telecommunications operator said on Monday.
Over 100 000 people have a stake in Vodacom South Africa through the scheme. Those shareholders can now trade the shares via an over-the-counter platform operated by Equity Express.
“It’s important to note that YeboYethu shares relate to Vodacom South Africa only, and are distinct from Vodacom Group shares which trade on the JSE,” the company said. “The price of YeboYethu shares is not directly linked to the price of Vodacom Group shares.”
YeboYethu chairman Zarina Bassa says Vodacom started the verification process for the scheme’s shareholders in November and has registered 2 000 buyers so far.
“Our main focus from here is to spread the word to make sure that all YeboYethu shareholders are aware of the options available to them, and also to empower shareholders with educational information on how to trade,” Bassa said.
“We see YeboYethu as a long-term investment and we’d obviously like to keep existing shareholders on board, but as of today those who do want to trade have the option open.”
The scheme requires those interested in offloading their shares to sell them only to black buyers. Information on the trading process as well as who is eligible to trade is available on the YeboYethu website.
All trading is done on the willing seller, willing buyer principle until both parties get the price they are looking for. The first seller to place a “sell offer” is matched with the first buyer who puts in a “buy bid” equal to or higher than the seller’s offer. Trading carries administration charges and is subject to tax, Vodacom said. — (c) 2014 NewsCentral Media