eboYethu shareholders stand to benefit when Vodacom SA’s (“VSA”) 2008 BEE transaction, initially valued at circa R7.5 billion, is scheduled to unwind as part of a new Vodacom Group BEE transaction. As a result, approximately 82 800 black investors will receive a significant cash dividend pay-out and acquire a larger shareholding now in JSE listed Vodacom Group, providing exposure to Vodacom’s local and international operations, which will enhance the liquidity in the YeboYethu share listed on the JSE BEE Board.
The new BEE transaction, valued at circa R17.5 billion, will have a 10 year term where YeboYethu will continue to partner with Vodacom Group as its BEE partner. It is the largest BEE transaction in the ICT sector, giving YeboYethu increased involvement as Vodacom Group’s BEE partner. Post the transaction YeboYethu would likely become Vodacom Group’s third largest shareholder.
Zarina Bassa, Chairman of YeboYethu said:
“These are exciting times for YeboYethu shareholders as we continue to invest in the next 10 years, building on what we have already achieved over the last 10 years with an increased involvement as Vodacom Group’s BEE partner, in the largest BEE transaction in the ICT sector. The board is unanimously supportive of the transaction as it creates immediate value now for the more than 82 800 black investors through the cash dividend and importantly, an opportunity to reinvest on favourable terms in the Vodacom Group.”
Commenting on the new BEE transaction, Vodacom Group CEO Shameel Joosub, said
Vodacom is committed to transformation and broad-based BEE in South Africa. The circa R17.5 billion BEE transaction provides an ideal opportunity for Vodacom to partner with our existing broad-based BEE partners and Vodacom staff in facilitating a further BEE ownership transaction, this time at the Vodacom Group level. The transaction will sustain Vodacom’s BEE ownership for the next 10 years and underscores our commitment to broad-based empowerment and transforming our equity ownership in order to reflect the demographics of South Africa.
stablished in 2008, YeboYethu was designed with the express intention of providing true grassroots empowerment. YeboYethu issued 14.4 million YeboYethu Ordinary Shares at R25 each and as a result of the public offer, approximately 102 000 qualifying black investors bought a stake in Vodacom SA. At the time of implementation of the Vodacom SA BEE Transaction, valued at R7.5 billion, it was one of the largest empowerment schemes in the telecommunications industry, resulting in YeboYethu owning 3.44% of Vodacom SA.
Between February 2014 and July 2016, these shares changed hands on the YeboYethu OTC trading platform and started trading at R55.50 on the JSE’s BEE board on 11 August 2016. The closing price on the JSE’s BEE Board on Friday, 8 June 2018 was R84,50 per share, excellent growth from the original R25 per share when the scheme commenced in 2008.
Article by Nicholas Munzhedzi