NEWS ANALYSIS: MTN’s BEE shareholders wait tentatively to see what happens
MTN’s black economic empowerment (BEE) shareholders are in for a turbulent few months between now and end-November, when the MTN Zakhele scheme unwinds.Less than two weeks after MTN released a circular outlining details of the unwinding process, the underlying value of MTNZ shares slumped more than 20% — from the illustrative value of R76 referred to in the circular — to just less than R60.On Tuesday, the MTN share price recovered some of the ground lost since the circular was compiled (when the MTN share was trading at R133.10).However, given the uncertain outlook for the sector and the prospect of a substantial block of MTN shares being pumped into the market between now and October 21, it’s unlikely BEE shareholders wanting to cash in their investment will realise the R76.According to the circular, MTNZ holds 75.4-million shares in MTN, which were valued at just more than R10bn, equivalent to R133 per MTN share. That block of shares is now worth a little more than R8.6bn.One inve...
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