COMPANY COMMENT
Executives comfy, but not MTN shareholders
Edcon files for cross-border bankruptcy protection in a US court, while the R112 for MTN Zakhele represents an attractive return on the R20 invested four years earlier
The MTN executives who were on the receiving end of the share allocations at the end of December are already comfortably in the money. The date of the transaction was December 28, and the market price at which the shares were awarded was R120. On Wednesday, just a week later, the share price had already bumped up to R129. The actual vesting of the shares is subject to performance conditions and, presumably, if the MTN share price slumps below R120 before they vest in three years time, the executives will be able to walk away without handing over any money. So, for the lucky executives, 2016 ended on a reasonably upbeat note. The same cannot be said for most of the other shareholders who are unable to walk away from their MTN shares without taking a hefty loss. It was a torrid year for this once high-flying company. Most of 2016 was dominated by a series of fumbles concerning the multibillion-dollar Nigerian fine, highlighting weaknesses in management. It seemed this was a business t...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.