An election process, whereby MTN Zakhele ordinary shareholders are able to elect whether they would like to receive cash, MTN Group shares, MTN Zakhele Futhi shares or a combination of these options in exchange for their MTN Zakhele shareholding, has been underway since 19 September and was finally approved on 11 October.

MTN Zakhele has broad-based shareholders from communities around the country and MTN Zakhele Chairperson Sindi Mabaso-Koyana says that it is essential that shareholders make sure that MTN Zakhele has their correct, updated bank details on record. “Shareholders must be verified and registered on the transaction platform in order to make an election. Shareholders will only need their South African ID numbers and cellphone numbers if their details have not changed, in order to verify and register. If details have changed, a change of details form and supporting documents are needed.”

There are two key deadlines for the election process, depending on the options shareholders wish to receive. Shareholders who hold their shares through the Custody Entity (Pacific Nominees) must elect before 19 October 2016 at 12:00 midday to be eligible to receive MTN Zakhele Futhi shares, while those who wish only to choose cash, MTN Group shares or a combination of these two options must do so by midday on 16 November 2016.

Community roadshows

MTN embarked on national community roadshows during September and October to drive awareness of the new MTN Zakhele Futhi scheme, which conclude with the remaining roadshows on 13 October in Port Elizabeth, 17 October in Durban and 18 October in Pietermaritzburg. “MTN Zakhele is represented at these roadshows to assist current MTN Zakhele shareholders to register and make their choice. We encourage shareholders to attend.”

“Unlike public applicants under the MTN Zakhele Futhi public offer, qualifying MTN Zakhele shareholders who elect the reinvestment option will be allocated at least a portion of the MTN Zakhele Futhi Shares which they elect, subject to scaling principles and other conditions,” says Mabaso-Koyana.

Mabaso-Koyana highlights that those electing to reinvest in MTN Zakhele Futhi will also need to visit a participating Nedbank branch to complete an application form as well as for FICA and BEE verification purposes. Copies of the prospectus containing details of the MTN Zakhele Futhi offer are available at participating Nedbank branches and some MTN stores around South Africa. “To be eligible to elect MTN Zakhele Futhi shares, shareholders must own and elect MTN Zakhele Futhi shares in respect of at least 50 MTN Zakhele shares. In order to be eligible to elect to receive MTN Group shares, shareholders must hold and elect MTN Group shares in respect of at least 200 MTN Zakhele shares,” says Mabaso-Koyana.

According to Mabaso-Koyana, those shareholders who would like to receive cash do not need to make an election, however they must ensure that MTN Zakhele has their correct, active bank details. “Shareholders who do not choose one or a combination of the cash or MTN Group share options by midday at 16 November 2016, or hold fewer than 50 MTN Zakhele shares by the Scheme Consideration Record Date (which is Friday, 18 November 2016), will automatically receive cash for the portion of their MTN Zakhele shares for which no election was received.”

“The MTN Zakhele scheme is designed to provide flexibility to MTN Zakhele shareholders to realise value in cash, and/or continue to retain exposure to MTN’s future prospects through electing MTN Group shares and/or participation in MTN’s new BEE scheme,” says Mabaso-Koyana. “We thank shareholders for coming on this journey with us.”

To elect, register or change details, visit www.mtnz.co.za or call 083 123 6869.