Africa’s largest mobile operator MTN has amended its special purpose empowerment vehicle, MTN Zakhele Futhi, which will now be able to appoint its own chair and nominate one of its members to the MTN board.
In July, the broad-based BEE commission found the scheme did not meet the requirements of the Empowerment Act and suggested several remedies, including the right for the scheme to appoint its own board.
The BEE vehicle, which was launched in 2016 and owns about 4% of MTN, has a market capitalisation of R183bn. The scheme was set up to afford qualifying black investors the opportunity to apply for shares at a discounted rate.
MTN said on Thursday other changes include dropping a requirement that the board chair of MTN Zakhele Futhi be a director of MTN.
Previously, at least one of the two MTN directors had to be present at an MTN Zakhele Futhi board meeting for a quorum to be constituted, but this requirement had been dropped.
MTN said it had either already implemented, or was in the process of implementing, these voluntary amendments.
In morning trade, MTN’s share was up 1.28% to 98.69.