Please advise if it is permissible to invest in the MTN Zakhele BEE share offer. The details that I have picked up from www.moneyweb.co.za are as follow:
Qualifying people in the form of Africans, Coloured, Chinese, Indian people and also black entities will be allowed to participate in the deal in which MTN plans to broaden it’s black ownership. The participants will subscribe for shares through a black investment company to be called MTN Zakhele empowerment scheme (build for yourself).
Black investors will be allowed to subscribe at R20 for each MTN Zakhele share, but will be obliged to buy a minimum of 100 ordinary shares at R2 000 (Note that the current share price is R122).
The transaction is expected to run for a period of six years. However, investors will be locked in and will be allowed to trade with other BEE investors after three years. When the transaction has lapsed participants will be allowed to trade with no restrictions.
This is similar to the previous BEE share offers that Vodacom and MTN have had.