[ 2016-08-22 ]

South Africa’s MTN to sell 9.9 bln rand in shares to black investors
South African mobile phone company MTN Group will
sell shares worth 9.9 billion rand ($729 million),
a 4 percent stake, to black investors to meet
government quotas on black ownership.

Africa’s biggest telecoms firm said the new
black economic empowerment deal would be launched
via a public offer next month to replace an
existing scheme that is due to unwind in
November.

Under black economic empowerment rules, South
African companies are encouraged to meet quotas on
black ownership, employment and procurement as
part of a drive to reverse decades of exclusion
under apartheid.

Meeting government rules on black ownership makes
a company more likely to qualify for government
tenders.

MTN said it will sell the shares at 102.80 rand
– a nearly 20 percent discount to Friday’s
closing price. If fully subscribed, the offer,
along with the existing scheme, will give black
investors more than 30 percent of the company’s
South African operations.

Source - CNBC Africa

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