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Vodacom opens trade on R7.5bn BEE scheme

Vodacom CEO Shameel Joosub

Vodacom CEO Shameel Joosub

Photo by Duane Daws

3rd February 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Telecommunications group Vodacom’s R7.5-billion black economic-empowerment (BEE) scheme kicked off limited trading this week.

YeboYethu, launched five years ago, would now allow the more than 100 000 shareholders to trade their shares on an over-the-counter platform operated by Equity Express.

“We started the verification process for YeboYethu shareholders back in November so that they are ready to trade straight away. We have also registered more than 2 000 buyers so far, with interest growing daily,” YeboYethu chairperson Zarina Bassa commented in a statement.

YeboYethu, which was designed to provide “true grassroots empowerment”, traded shares in Vodacom South Africa and was not directly linked to the price of Vodacom Group shares.

All trading, which would carry administration charges and was subject to tax, would be undertaken on a “willing seller” and “willing buyer” principle until both parties got the price they were looking for, explained Bassa.

“We are proud of what YeboYethu has achieved in terms of true broad-based empowerment. This scheme has already paid out almost R65-million in dividends and now small shareholders across South Africa can either increase their stake or unlock the value of their investment,” Vodacom Group CEO Shameel Joosub said.

Bassa concluded that extensive stress testing on the trading system, which was operated by an experienced trading platform that handles high-volume accounts for several other major BEE schemes, was undertaken to ensure a “smooth start”.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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