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AN OVERVIEW OF THE APPLICATION PROCESS
Please use the following EFT banking details:
Please note: cheques, postal orders, credit cards and debit cards will NOT be accepted.
Once the MTN Zakhele Futhi Offer closes on 21 October 2016, the share allocation process will start, which can take up to 60 days to complete.
AN OVERVIEW OF THE MTN ZAKHELE FUTHI OFFER
The purpose of the MTN Zakhele Futhi Offer is to provide the Black Public with an opportunity to participate in the ownership of the MTN Group, either through the MTN Zakhele Futhi Public Offer or by continuing to participate therein through the MTN Zakhele Re-investment Offer. The MTN Zakhele Futhi Offer is a part of the 2016 MTN BEE Transaction, which is sized to be approximately 4.0% of MTN's issued share capital on a Fully Diluted Basis.
Please note that this diagram is illustrative only. It assumes that the Target Equity Raise is met and that the relevant Inception Total Share Cover Ratio is met for the advance of the preference share funding and that no adjustments to the structure are accordingly required.
Each MTN Zakhele Futhi Share has an underlying value, as at the Last Practicable Date and based on the assumptions in paragraph 3.5 of Section 1 of the Prospectus, of approximately R33.50. The market price of the MTN Shares is the most important factor affecting the value of an MTN Zakhele Futhi Share although such value is also significantly impacted by the financing obligations. The table below sets out the indicative underlying value of an MTN Zakhele Futhi Share on commencement based on various MTN Share prices:
(As at the Last Practicable Date, the MTN Share price was R125.31.)
MTN Zakhele Futhi will subscribe for up to 76,835,378 MTN Shares.
Based on 76,835,378 MTN Shares held and 123,416,819 MTN Zakhele Futhi Shares in issue, MTN Zakhele Futhi will hold 62.2 MTN Shares for every 100 MTN Zakhele Futhi Shares issued. This number may vary depending on the ultimate structure. See paragraph 1.2 of Section 4 of the Prospectus for further details.
Working from a number of 62.2 MTN Shares for every 100 MTN Zakhele Futhi Shares, in the event of the liquidation of MTN Zakhele Futhi immediately on its commencement, and based on the MTN Share price of R125.31 at the Last Practicable Date, MTN Zakhele Futhi would need to sell:
thus leaving 33,185,289 MTN Shares for distribution to the MTN Zakhele Futhi shareholders (i.e. you). This distribution would be (excluding taxation and costs) 26.9 MTN Shares for every 100 MTN Zakhele Futhi Shares held.
This equates to an immediate liquidation value (excluding liquidation costs and any taxes payable by MTN Zakhele Futhi and yourself) of R33.50 per MTN Zakhele Futhi Share.
Below is a summary of how your R20.00 per share investment combines to acquire an MTN Share:
No, there is no limit on the number of MTN Zakhele Futhi Shares that may be applied for; however, there is a 15% maximum ownership (directly or by persons in concert or connected) shareholding rule applicable per shareholder (and its connected persons and concert parties) on allocation of the MTN Zakhele Shares. Accordingly, no allocations of MTN Zakhele Futhi Shares in breach of the aforementioned maximum ownership may be made by MTN Zakhele Futhi without MTN's prior written consent. Any attempt to acquire or hold more than this percentage without MTN's prior written permission is prohibited and may trigger various adverse consequences to you. For further details, see paragraph 12.6 of Section 2 of the Prospectus.
The table below sets out the number of MTN Zakhele Futhi Shares that a prospective shareholder will acquire based on the amount invested:
You may only voluntarily exit after the Minimum Investment Period. Special provisions apply in the event of death, insolvency and sequestration - see questions 26, 27, and 28 below.
MTN Zakhele Futhi reserves the right to accept or reject applications, in its sole discretion. Without limiting this discretion, the following will likely disqualify you:
Yes, in the circumstances set out in the Prospectus, which include:
Yes. All Black Groups holding MTN Zakhele Futhi Shares must maintain their BEE Status during the Minimum Investment Period at a level no less than that which they were when they acquired their MTN Zakhele Futhi Shares (as set out in the Application Form), and must continue to qualify as a Black Group throughout the Empowerment Period. Should a Black Group fail to maintain its BEE Status and/or status as a Black Group and fail to remedy this, this may result in their MTN Zakhele Futhi Shares being acquired by MTN at a discount of up to 70% of the Call Reference Price, depending on when the breach occurs and circumstances in which it arose. Furthermore, your rights to receive dividends and to vote your MTN Zakhele Futhi Shares will immediately be deemed to have been ceded to MTN or its nominee/s, unless it expressly agrees otherwise.
Your estate or insolvent trustee, as the case may be, will be permitted to transfer your MTN Zakhele Futhi Shares to your heir, provided that your heir is an Eligible MTN Zakhele Futhi Shareholder, or to transfer your MTN Zakhele Futhi Shares to an Eligible MTN Zakhele Futhi Shareholder within 120 days, failing which your estate or trustee may be forced to sell your MTN Zakhele Futhi Shares to MTN at: (i) the Call Reference Price in relation to death or at a 10% discount to the Call Reference Price in relation to involuntary sequestration or (ii) a discount of up to 70% of the Call Reference Price in relation to voluntary sequestration, depending on when it occurs.
You will be permitted to rectify the breach or sell your MTN Zakhele Futhi Shares to an Eligible MTN Zakhele Futhi Shareholder within 120 days, failing which you may be forced to sell your MTN Zakhele Futhi Shares to MTN at a 10% discount to the Call Reference Price.
You and/or the liquidator will be permitted to rectify the breach or sell your MTN Zakhele Futhi Shares to an Eligible MTN Zakhele Futhi Shareholder within 120 days, failing which you and/or the liquidator may be forced to sell your MTN Zakhele Futhi Shares to MTN at a 40% discount to the Call Reference Price.
(Voluntary liquidation by a Black Group is treated as a breach of the Relationship Agreement. See question 24 above.)
No, only as a result of death, insolvency or sequestration. See questions 20, 26, 27 and 28 above.
No, not until the end of the Empowerment Period.
A dividend is a payment made by a company to its shareholders as a distribution of its assets or profits, if so decided by the directors of the company, taking into account (amongst others) the future cash requirements of the company.
Annual financial statements of MTN Zakhele Futhi will be made available to all MTN Zakhele Futhi Shareholders and this will indicate the performance of its underlying investment in accordance with IFRS.
You can participate in the appointment of an MTN Zakhele Futhi Director by voting at annual general meetings of MTN Zakhele Futhi.
The MTN Zakhele Futhi Shares will not be listed during the Minimum Investment Period. After this period, it is expected that the MTN Zakhele Futhi Shares will be listed on a recognised stock exchange to facilitate trading between Black People and Black Groups during the remaining fourth to eighth years of the Empowerment Period. After eight years you will be able to sell your MTN Zakhele Futhi Shares without special restrictions.
During the Minimum Investment Period, MTN Zakhele Futhi shares will not be traded and will therefore not have a listed price. Thereafter, once the MTN Zakhele Futhi Shares are listed on a recognised stock exchange, MTN Zakhele Futhi will publish the most recent closing price for an MTN Zakhele Futhi Share on the relevant exchange, which will represent the free market price that buyers and sellers transacted at.
There is no capital protection. MTN Zakhele Futhi will be subject to all the investment risks faced by ordinary shareholders of a company.
The information contained below has been summarised for general information purposes only and is not intended to provide an exhaustive list of information and documentation required in order to identify and verify the applicant in terms of FICA. The Applicant must make reference to the Financial Intelligence Centre Act, 2001 to the extent there are changes to the FICA requirements.
BLACK PEOPLE
For the minor
For the guardian/parent
For the guardian/parent: proof of physical address (if different from proof of physical address for the person signing the cohabitation form):
Completed and signed legal-guardian/parent declaration form (to be provided and signed at the participating Nedbank branch).
BLACK GROUPS
A declaration (original letter) by the applicant confirming the trading name.
Proof of physical address (residential); and
Proof of trading address (only if different from physical residential address)
A proof of authority is only applicable in the event that the client grants another natural person authority to establish a business relationship or act/transact on the clients account. The following original written instructions provide proof of that person’s authority and must be obtained:
Note: Where the sole proprietor acts on his own behalf, proof of authority to act does not need to be provided. Proof of authority must still be obtained if another person, other than the sole proprietor is granted authority to act on behalf of/for the sole proprietor.
Associated-party information (if applicable)
Required for:
Please refer to the associated party information tab above for more specific associated-party information.
Associated party who is a South African citizen resident in South Africa or an Asylum Seeker Resident in South Africa or a Refugee Resident in South Africa or a Minor:
Associated party who is a South African citizen resident abroad:
Associated party who is a Foreign National Resident abroad:
Associated party who is a Foreign National Resident in South Africa:
Proof of trading address
Refer to the list of acceptable proof of address documents below.
Associated party which is a Sole Proprietor:
Associated party which is a South African listed company or a Wholly Owned Subsidiary of a South African company or a Foreign Listed Company or a Wholly Owned Subsidiary of a Foreign Listed Company or a Partnership:
Associated party which is a South African non-listed company or a Foreign non-listed company:
Associated party which is a Non-profit Company/Section 21 company or a Close Corporation or an Other Legal Entity:
Associated party which is an Inter-Vivos trust or a Testamentary trust:
Company documentation (only if close corporation)
Original documents unless stated otherwise
AND
If there was a name change:
Proof of authority
Required for a natural person purporting to act on behalf of the close corporation mandated officials and/or authorised signatories.
Not required if there is only one member and no one else transacting on the account.
Company documentation (only if converted close corporation)
The original or a certified copy of the Close Corporation Registration Certificate (form CoR 18.3).
Proof of shareholding (only if converted close corporation)
Associated party information (if applicable) required for:
Associated party who is a South African citizen resident in SA or an Asylum Seeker Resident in South Africa or a Refugee Resident in South Africa or a Minor:
Company documentation
Verification of identity:
OR
Verification requirements for a converted Close Corporation:
Change of name of a South Africa Non Listed Company:
Where a South Africa non listed company changes its name, after the Companies Act came into effect the following documents need to be obtained:
and
Required for a natural person, purporting to act on behalf of the South African non-listed company, mandated officials and/or authorised signatories. Not required if there is only one director and no one else transacting on the account.
Proof of shareholding
(Of an individual/legal entity confirming % voting rights)
Please call the Nedbank Contact Centre on 083 900 6863 for more information (toll free number for MTN subscribers only).
and either
Note: If the CoR14.3 does not contain the registered address, the CoR 14.1 must be obtained.
The registered name and registration number of a converted close corporation must be verified by comparing these particulars with:
Note: The registered address of the converted close corporation does not need to be verified (currently there is no form issued by the Commissioner that contains the registered address of a converted close corporation).
Change of name of a South Africa Non Profit Company:
Where a South African non-profit company changes its name the following documents need to be obtained.
Where a company’s name has changed Nedbank must obtain:
Required for each natural person purporting to act/transact on behalf of the South African non-profit company.
Associated-party information
Legal entity documentation
The following requirements are applicable for a cooperative:
If there was a name change for the cooperative:
Required for a natural person purporting to act on behalf of the other legal person/legal entity/organ of state mandated officials or authorised signatories.
Associated party information (if applicable)
Proof of identity
Original document or certified copy of the original
The trust deed or other founding document in terms of which the trust was created.
Must be the original document
Proof of address
Associated party information
DOCUMENTATION
This document details the identification and verification requirements for associated parties of Black Groups applying for MTN Zakhele Futhi Shares.
NOTE: Where an associated party is a trustee to a trust then proof of residential address (original or certified copy) must also be obtained in addition to the documents applicable below.
Note: where the associated party is a Nedbank client then only the original SA green bar coded identity document or original SA identity card will be accepted. Where the associated party is not a Nedbank client (i.e. no accounts or existing relationship with the Bank) then any of the above documents can be accepted – original or certified copies thereof.
Note: where the associated party is a Nedbank client then only the original SA green bar coded identity document or original SA identity card or original valid foreign passport will be accepted. Where the associated party is not a Nedbank client (i.e. no accounts or existing relationship with the Bank) then any of the above documents can be accepted – original or certified copies thereof.
Note: where the associated party is a Nedbank client then only the original asylum permit will be accepted. Where the associated party is not a Nedbank client (i.e. no accounts or existing relationship with the Bank) then an original or certified asylum permit will be accepted.
Note: where the associated party is a Nedbank client then only the original asylum permit or original valid 13 digit bar coded refugee identity document will be accepted. Where the associated party is not a Nedbank client (i.e. no accounts or existing relationship with the Bank) then the original section 24 certificate or original/certified copy of the valid 13 digit bar-coded refugee identity document can be accepted.
Note: where the associated party is a Nedbank client then only the original valid foreign passport will be accepted. Where the associated party is not a Nedbank client (i.e. no accounts or existing relationship with the Bank) then the original or certified copies, of any of the above three stipulated documents, may be accepted.
Note: where the associated party is a Nedbank client then only the original valid SA green bar coded identity document or original SA identity card or original SA passport will be accepted. Where the associated party is not a Nedbank client (i.e. no accounts or existing relationship with the Bank) then the original or certified copies, of any of the above four stipulated documents, may be accepted.
Note: where the associated party is a Nedbank client then only the original valid SA green bar coded identity document or original SA identity card or original birth certificate or original valid passport will be accepted. Where the associated party is not a Nedbank client (i.e. no accounts or existing relationship with the Bank) then the original or certified copies, of any of the above four stipulated documents, may be accepted.
The sole proprietor will be identified and verified in accordance with the standard verification requirements applicable to individuals. For SA citizens resident in South Africa, the following will apply.
The trading name of the sole proprietor will be verified by comparing these particulars with:
AND either
Verification requirements for a converted Close Corporation
Change of name of an SA Non Listed Company
Note: If the CoR14.3 does not contain the registered address, the CoR 14.1 must be obtained
Verification requirements for a converted Close Corporation The registered name and registration number of a converted close corporation must be verified by comparing these particulars with:
Change of name of an SA Non-profit company (company registered before the Companies Act, 71 of 2008 came into effect)
Foreign non listed company registered before the Companies Act, 71 of 2008 came into effect The name and number of foreign incorporation must be verified by comparing these particulars with:
Foreign non listed company registered after the Companies Act, 71 of 2008 came into effect Domesticated companies The name and number of foreign incorporation must be verified by comparing these particulars with:
The registered name and number in SA must be verified by comparing these particulars with:
External companies (which includes profit and non-profit companies) The name and number of foreign incorporation must be verified by comparing these particulars with:
The registered name and registration number of the close corporation must be verified by comparing these particulars with:
AND, if applicable
The name and legal form of the other legal person/entity/organ of state must be verified by comparing these particulars with:
Additional verification requirements for co-operatives
The name of the partnership must be verified by comparing these particulars with the original or certified copy of:
If there is no written partnership agreement, a partnership declaration must be completed and signed by all partners to confirm:
SA registered trusts Nedbank must verify the name and number of the trust by comparing these particulars with:
Trusts created outside SA Nedbank must verify the name and number of the trust by comparing these particulars with:
Trusts created outside SA