MTN Group has proposed extending its 2016 Broad-Based Black Economic Empowerment (BEE) scheme operated through MTNZF by an additional three years, moving the maturity date from November 2024 to November 2027. This extension increases the scheme’s overall term to 11 years, providing more time for shareholders to benefit from the scheme.
The extension is designed to offer further value for MTNZF ordinary shareholders rather than unwinding the scheme at its original maturity date. MTNZF’s board will have the discretion to partially or fully unwind the scheme during this extension period or enter into derivative transactions related to the MTN shares held by MTNZF, subject to necessary consents.
Additionally, MTN may expedite the unwinding process during this period by conducting specific share repurchases, pending approval from MTN shareholders. MTN will also bear its own costs as well as any approved costs incurred by MTNZF related to the scheme’s extension.
