MTN Zakhele lists on the JSE's Empowerment Segment
Johannesburg, 05 November 2015: The Johannesburg Stock Exchange (JSE) today welcomed MTN Zakhele onto the Empowerment Segment of the JSE's Main Board.
MTN Zakhele was established as a vehicle for previously disadvantaged South Africans to invest in MTN Group Limited (MTN Group), a leading emerging markets telecommunications service provider. MTN Zakhele has a 4% stake in MTN Group.
MTN Zakhele is the first company to list on the Empowerment Segment of the JSE this year. The scheme's debut onto the Empowerment Segment follows the directive from the Financial Services Board (FSB) to ensure that all over-the-counter (OTC) share trading platforms become regulated.
JSE Director of Capital Markets, Donna Oosthuyse, comments on the significance of today's listing, "The JSE wants the Empowerment Segment to enable broad-based share ownership of listed companies by black shareholders. MTN Zakhele's listing is an exciting development for the JSE. It will provide black shareholders with a platform to trade their shares on one of the best regulated exchanges in the world, offering them guaranteed settlement in a transparent environment. We look forward to further listings on the Empowerment Segment."
The JSE established its Empowerment Segment in 2011 as a platform for the secure trading, clearing and settlement of BEE securities. Until October 2015, trading in MTN Zakhele shares was conducted on an OTC share trading platform. Under the enhanced structure of the JSE Empowerment Segment, a BEE Verification Model has been introduced to ensure that the intended beneficiaries of these schemes do in fact hold the shares and that trades are executed exclusively between compliant participants of the schemes.
MTN Zakhele's Chairperson, Sindi Mabaso-Koyana, comments: "Today marks a significant milestone for our shareholders. The MTN Zakhele listing follows the recent change in the FSB's policy in relation to the regulation of all providers of OTC share trading platforms for facilitating trading in their own shares. The listing on the JSE's Empowerment Segment of the main board provides MTN Zakhele shareholders with several advantages. In particular, the JSE listing provides shareholders with regulatory certainty for trading their MTN Zakhele shares. We anticipate that a listing will provide black participants with greater liquidity in comparison with the OTC share trading platform; with price discovery, as the JSE's share prices are publically available across most print and online financial publications."
The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 125 years. It connects buyers and sellers in equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. www.jse.co.za
Director: Capital Markets
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