By Ujuh
The employee chapter in Vodacom’s R7.5bn black economic empowerment (BEE) scheme will be converted into tradable YeboYethu shares in 2019 following a delayed pay day.
The conversion news is carried in the 2014/15 annual report. The annual report says Vodacom employee empowerment trust’s initial seven-year maturity period ends in August 2015.
“The units will be converted into YeboYethu shares in March 2019.”
The scheme’s pay day had to be postponed due stubbornly high debt. There was some commotion from the Vodacom ranks when the news of the postponement of the initial maturity date was made last year.
Vodacom said “Following this date (conversion date), we will aim to facilitate the sale of these shares to qualifying members of the South African public through the online YeboYethu trading platform, which was launched for black South Africans in February 2014.”
The report also declared that the allocation of shares to employees has been closed because all available shares under the R7.5bn YeboYethu BEE scheme have been allocated.
Vodacom explained that in July 2008, YeboYethu acquired 3.44% of Vodacom South Africa in our R7.5 billion BBBEE transaction.
“All permanent South African employees were able to participate in the Trust. Of the units available to the Trust, 75% was allocated to employees on 1 September 2008. The remaining 25% was set aside for future employees on a sliding scale over the next five years. “On 1 September 2014, the last of the available units were allocated to employees.”
Vodacom noted that the total allocation of the employee units is weighted 70/30 in favour of black employees.
The employees’ chapter of the deal acquired 45% of the R7.5bn deal and the balance went to strategic partners and the black public. Recently, Vodacom’s enterprise development initiative, The Innovator Trust, has been acquiring YeboYethu shares from the black public.
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