MTN Zakhele, South Africa’s largest empowerment scheme in the telecommunications industry, will begin restricted trading of its ordinary shares from 25 November 2013 on an online trading platform and a dedicated call centre.

Existing MTN Zakhele ordinary shareholders and eligible black people or black groups need to register online or through the call centre from 1 November 2013, in order to be able to buy and/or sell shares from 25 November 2013.

The R8,1-billion MTN Zakhele transaction was concluded in November 2010 as part of MTN’s ongoing efforts to further its BBBEE objectives in South Africa.

MTN Zakhele owns approximately 4% of MTN Group’s total issued ordinary shares. The ordinary shares in MTN Zakhele are owned by approximately 120 000 black investors.

With the three year minimum investment period having passed, during which no trading in MTN Zakhele ordinary shares was permitted, these investors are able to sell their MTN Zakhele shares to eligible, registered buyers, to buy more MTN Zakhele ordinary shares or to continue to hold their MTN Zakhele ordinary shares.

MTN Zakhele chairman, Thulani Gcabashe, comments: “The MTN Zakhele scheme is progressing well and we are looking forward to the shares being traded. We are calling on all existing and potential eligible investors, who want to trade in MTN Zakhele ordinary shares, to register and verify their personal information starting on 1 November 2013 when registration and verification opens.”

Gcabashe says that, due to the strong performance of the MTN share price and dividends received, the scheme has been able to reduce certain of its debt obligations more quickly than anticipated, and that is good news for investors.

“The success of MTN Zakhele is dependent on the performance of the MTN share price, as well as the ongoing receipt of dividends to service its funding commitments. The implementation of the refinancing proposed at the July 2013 AGM is expected to improve the total returns to shareholders, as less funds will be required to service the more expensive notional vendor funding owed by MTN Zakhele to MTN.”

As the value of the MTN Zakhele ordinary shares will depend on, amongst other things, demand on the trading platform – awareness and investor education are important factors for success.

“We have a number of initiatives in place to facilitate an efficient trading platform and provide assistance to all current and potential investors. Our trading call centre can be reached on 083 123 6869 and shareholders can visit www.mtnz.co.za for information. Shareholder education and registration seminars will be held at community centres around the country during November 2013,” says Gcabashe.

The call centre, web site and investor seminars are the channels through which shareholders and potential investors can register and access detailed information. Shareholders should note that registration will not take place via MTN and Post Office outlets where the investors collected and submitted their original applications, respectively, three years ago.

All MTN Zakhele ordinary shareholders are invited to attend Shareholder Education and registration seminars.

Shareholders can arrive at any time during the hours specified below for assistance with registration, which is required to be able to trade in MTN Zakhele ordinary shares. Experts will be available to answer questions regarding trading. Specific shareholder education presentations will take place in Polokwane, Durban, Pretoria, Port Elizabeth, Cape Town, and Johannesburg over the next few weeks.