The board of broad based black economic empowerment (B-BBEE) investment scheme, Welkom Yizani, has recommended that an ordinary dividend of R6.2m be declared to ordinary shareholders.
This will result in a dividend of 42.5 cents per ordinary share, before dividend tax. After deducting dividend tax, Welkom Yizani ordinary shareholders will receive a net dividend of 34 cents per ordinary share.
The declaration of dividends is subject to approval by shareholders at the annual general meetings.
The Welkom Yizani annual general meeting will be held on 28 August 2018.
The Welkom Yizani scheme has failed to live up to the expectations of an economic reparation initiative.
Established in 2006 the scheme was designed as a BBBEE partner to Nasper’s Media24 which operates a number of popular print media titles like City Press, Daily Sun, Sunday Sun, Beeld, Rapport and a host of knock and drops and magazines. It also owns some of the biggest online titles in the country like news24, fin24, channel24, travel24, wheel24 and HuffPost South Africa.
The Welkom Yizani scheme attracted more than 100 000 black people, who subscribed for shares at R10.00 per share. 12 years later these shares are still stuck around the R10.00 mark and have on occasions dipped to levels far below R10.00 which saw some investors exit at a huge loss.
Many participants are crying foul. But Naspers/Media24 maintains that everything is in order.
The 2018 Media24 financial report notes that “Welkom Yizani shareholders were able to derive immediate economic benefit from their shares since 2017 when Naspers… waived additional preference share debt and accrued interest owed to it by Welkom Yizani to the value of R51.6m. Naspers has waived a total of R434m during 2016.”
The statement noted that “As at 31 March 2018, Welkom Yizani had 89 166 shareholders”.firstname.lastname@example.org