Black investors have a new opportunity to invest in MTN at a discounted rate through the telecommunication giant’s new black economic empowerment (BEE) scheme, Zakhele Futhi, whose application phase officially opened on Monday and closes at 4pm on 21 October.
Here’s what you need to know:
Who qualifies to apply?
Any black person (African, Coloured and Indian) who is a South African citizen or a naturalised citizen. Companies and entities that are 51% black-owned or where black people exercise at least 51% of the voting right may also apply for shares as well as parents or legal guardians of black minors on their behalf.
How much does it cost?
Each Zakhele Futhi share costs R20 and you must apply for a minimum of 100 shares to participate in the scheme, meaning you have to invest at least R2 000. Your investment will be locked in for three years, after which you will be able to trade shares with other qualifying black investors. After eight years you will be able to sell to anyone.
What documentation must I submit with my application?
For individuals: FICA supporting documents and proof of bank account (a copy of your latest bank statement) stamped by your bank.
For black groups: FICA supporting documents, proof of bank account through a copy of the group’s transactional South African bank statement and BEE verification supporting documents (a certified copy of your valid BEE ownership certificate) if you apply as a cash applicant buying shares worth more than R1 million; a re-investment applicant applying to re-invest over 15 000 MTN Zakhele shares; or if you’re applying to re-invest more than 8 000 MTN Zakhele shares and have also applied for extra MTN Zakhele Futhi shares as a cash applicant.
New applicants to the scheme can apply for shares in cash.
You can start the process off by capturing data online at www.mtn.com/zakhelefuthi, but you will still need to visit a participating Nedbank branch to submit supporting documents and sign the application. Once your application has been submitted, you will receive payment instructions via SMS as well as a unique reference number which you will use to make the payment. Your unique reference number should be used as your payment reference.
There’s a maximum limit of R24 999 per deposit made in physical cash and they must be made before 4pm on 21 October, while EFT payments must be made by 4pm on 18 October.
EFT payments can be made to the banking details below:
- Account holder: MTN Zakhele Futhi (RF) Limited
- Nedbank account number: 1119098157
- Account type: Current account
- Branch code: 198765
- Reference: The unique reference number sent by Nedbank via SMS when you submit your application form and supporting documents.
Applicants don’t need to make any cash payments if you’re applying as part of the re-investment offer, but you can apply for additional shares as a cash applicant.
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If you hold dematerialised MTN Zakhele Shares, you must instruct your CSDP or broker in accordance with your mandate with them as to your election by no later than 12pm on 21 October 2016. If you hold your MTN Zakhele Shares through Pacific Nominees, you must make an election on the MTN Zakhele transaction platform, or through the MTN Zakhele call centre on 083 123 6869, by 12pm on 19 October 2016.
If you hold certificated MTN Zakhele Shares, complete and deliver the form of surrender, election and transfer (the pink form in the MTN Zakhele Scheme circular) to MTN Zakhele transfer secretaries by latest noon on 21 October 2016.
From here, you’ll follow the same application process as cash applicants, but you won’t be required to make a cash payment.
Before you submit your application form, make sure that you are certain in your decision because applications can’t be withdrawn after they’ve been submitted.