FSB extends temporary exemption granted to MTN Zakhele - CNBC Africa

FSB extends temporary exemption granted to MTN Zakhele

Southern Africa

by admin 0

MTN Zakhele was set up as a vehicle for previously disadvantaged South Africans to invest in the MTN Group. PHOTO: Reuters

The Financial Services Board (FSB) has extended a temporary exemption granted to MTN Zakhele to operate a trading platform for its ordinary shares until 30 June 2015.

MTN Zakhele had applied for the current exemption to be extended to 25 November 2016, being the date on which trading restrictions on MTN Zakhele shares would be lifted in terms of the scheme.

It added that the temporary exemption is subject to particular terms and conditions which relate to maintaining good corporate governance and compliance to trading and disclosure rules, to name a few.

(WATCH VIDEO: FSB declines MTN Zakhele’s extension exemption period)

“MTN Zakhele is engaging with the Johannesburg Stock Exchange (JSE) to work towards implementing an alternative solution to enable shareholders to continue to securely trade their shares by applying for a listing on the JSE’s black economic empowerment board (BEE board),” it said.

“The JSE has initiated the process of making amendments to the BEE board in order to better serve the needs of issuers of restricted shares, such as MTN Zakhele.  MTN Zakhele will endeavour to list on the BEE board as soon as is practicable, once suitable amendments have been made to the BEE board.”