MTN Zakhele reports successful 2013
Telecommunications group MTN’s broad-based black economic-empowerment trading platform, MTN Zakhele, has delivered good progress during 2013, with trading of shares now at six times the original share price amid robust trade.
Speaking at the annual general meeting on Tuesday, MTN Zakhele chairperson Thulani Gcabashe said a more cost-effective funding structure had been put in place during the year and higher-than-expected dividends had enabled the fund to refinance its debt, contributing to a “successful” year.
Since the opening of trade nearly four years ago, more than six-million shares – valued at over R600-million – had changed hands, with R2.5-million shares now traded each day.
Shares in the scheme were currently trading at about R123 apiece – over six times the original price of R20 a share in 2010.
“MTN Zakhele now has just over 110 000 shareholders, the significant majority (85%) of whom are individual shareholders who own 500 shares or less,” Gcabashe said.
A total of R658-million in dividend income was received from MTN Group in 2013, compared with dividend income of almost R601-million in 2012.
“[The] higher-than-expected dividends have helped MTN Zakhele repay debt sooner than originally planned,” Gcabashe explained, adding that this had led to significant savings from the refinancing of some of its debt.
MTN Zakhele used the dividends, as well as R1.7-billion in funding secured through the issue of preference shares to three undisclosed banks in August, to settle a portion of the more expensive notional vendor finance (NVF).
The NVF balance had been reduced from R3.52-billion at the end of 2012, to R1.68-billion at the end of 2013, with MTN Zakhele saving more than R9.4-million in interest over the last five months of the year.
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