By Ujuh
MTN Zakhele shares seem to be destined to list on the black economic empowerment (BEE) platform of the Johannesburg Stock Exchange (JSE) alongside the Sasol Inzalo shares.
This emerges from a statement released early on Tuesday by MTN Zakhele chairperson Thulani Gcabashe.
The statement said MTN Zakhele has applied for a listing on the BEE platform of the JSE.
MTN is engaging with the JSE to enable its shareholders to continue to securely trade their shares, said the statement.
The statement comes after the Financial Services Board (FSB) ordered all over the counter (OTC) trading platforms to apply for trade exchange licence. The order came last year but has been postponed to accommodate initiatives like the MTN Zakhele OTC trading platform to get their houses in order.
MTN Zakhele has since been granted a number of temporary exemptions to sort out its situation.
MTN Zakhele sort to secure an exemption that will expire on the 25th of November 2016. This is the date on which trading restrictions on MTN Zakhele shares will be lifted.
The FSB rejected this plea and instead kept on giving MTN Zakhele temporary extensions. The previous extension was to 31st March 2015.
MTN Zakhwele announced yesterday that it has another extension to 30 June 2015. It will use this extension to engage the JSE.
Gcabasshe said “The JSE has initiated the process of making amendments to the BEE board in order to better serve the needs of issuers of restricted shares, such as MTN Zakhele.”
He added that “MTN Zakhele will endeavour to list on the BEE board as soon as is practicable, once suitable amendments have been made to the BEE board.”
He said following an application by MTN Zakhele for the current exemption to be extended to 25 November 2016, being the date on which trading restrictions on MTN Zakhele shares will be lifted in terms of the scheme, the FSB has now approved a further temporary exemption to 30 June 2015.
“The temporary exemption is subject to particular terms and conditions which relate to maintaining good corporate governance, recording and surveillance of transactions, having effective security and back-up procedures in place, and compliance to trading and disclosure rules,” said Gcabashe.
This piece was first published in ujuh.co.za whose publishers can be reached at news@ujuh.co.za
Email: editor@techfinancials.co.za
