By Gugu Lourie
MTN Zakhele said on Thursday that it was on track to list on the black economic empowerment (BEE) platform of the Johannesburg Stock Exchange (JSE) alongside the Sasol Inzalo shares.
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.
Image source: Who’swho
MTN Zakhele, the Black Economic Empowerment (BEE) scheme of MTN, has since been granted a number of temporary exemptions to sort out its situation.
In a statement it said on Thursday: “It has achieved significant milestones following its decision to pursue a JSE listing.”
On 24 June 2015, the FSB conditionally extended the expiry date of MTN Zakhele exemption to 30 October 2015, subject to MTN Zakhele continuing to make progress in its preparations for a listing on the JSE.
MTN Zakhele shareholders will, after the JSE listing, continue to be able to submit buy and sell orders through the existing methods, being the call centre and website.
Shortly before the listing on the JSE the OTC platform will need to be shut down to enable, amongst other things, migration of
shareholder data, and to enable shareholders to be registered on a new system which will enable them to trade on the JSE.
“Prior to any shutdown for such transition, shareholders will be advised of when the shutdown will occur and its anticipated duration in order to enable them to make their investment decisions accordingly,” says Sindi Mabaso-Koyana, the chairperson of MTN Zakhele. “Shareholders will be kept apprised of developments as timelines for listing on the JSE become clearer.”
Established in 2010, MTN Zakhele is a vehicle for previously disadvantaged South Africans to invest in MTN Group.
Over 13 million shares valued at more than R1 billion have changed hands since the opening of trade in November 2013.
Meanwhile, ZAR X, a newly formed company, is keen to set-up a stock exchange in South Africa that will compete with the current incumbent, the JSE.
The Financial Services Board has issued a notice of application for exchange licence in terms in Section 7 of the financial markets Act, 2012 and identified ZAR X as an applicant.
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