MTN has decided to put its proposed BEE deal on hold until the economic climate improves.
On 15 December 2008, the company advised shareholders that it had entered into a Memorandum of Understanding with the Public Investment Corporation (PIC) recording the salient terms and conditions for the acquisition of Newshelf 664 by MTN from PIC and that MTN planned to implement a new black economic empowerment transaction during the first half of 2009.
A statement today reads: "MTN shareholders are advised that, in light of the severe constraints in current financial markets, the board of directors of MTN has determined that it is presently not in the best interests of the company, its shareholders and the BEE investors to implement the proposed BEE Transaction during the first half of 2009 as originally planned.
"The board remains fully committed to implementing the BEE Transaction at the appropriate time."
The company does, however, plan to go ahead with the Newshelf acquisition and, subject to concluding the relevant agreements, will be tabling the transaction for shareholder approval as soon as practicable.