YeboYethu lists, hoping BEE investors will stay put
VODACOM’s BEE share scheme, YeboYethu, has become the third such scheme to be listed under the black empowerment sector of the JSE main board.
Speaking on Thursday at the JSE listing, YeboYethu chairwoman Zarina Bassa said she hoped shareholders would hold onto their shares.
“I have mixed feelings about this listing because while it creates great opportunity for that shareholder base that has travelled with us for the last eight years, this now gives them broader access and I hope it won’t lead to them selling their shares.”
The aim of YeboYethu was to attract investors at grassroots level, said Bassa. And since 2008, most shareholders have been from this demographic. At its inception, YeboYethu attracted about 102 000 investors. It now has about 87 534 black investors.
“It was people who had put in their entire life savings into this with a view to it being there for their children’s further education [or] retirement funding. They’ve seen this as part of what they’d leave their children,” said Bassa.
YeboYethu has negotiated special fees with the JSE, whereby investors can buy its shares through a stockbroker selected by YeboYethu for R115 plus VAT for shares up to the value of R40 000. Purchases above that mark will be subject to a 0.35% fee plus VAT.
Vodacom has a website, www.yeboyethushares.co.za, to assist investors who might not have the financial background to understand the process.
YeboYethu has a market capitalisation of about R7.46-billion. It holds a 3.44% stake in Vodacom.
The move to list YeboYethu came after the Financial Services Board made it mandatory for companies that facilitate over-thecounter trade in BEE shares to list on a stock exchange.
The first company to list on the JSE’s empowerment segment was MTN Zakhele, in November last year. It has about 124 000 shareholders. The MTN Zakhele share scheme, established in 2010, will be unwound in November this year. Sasol Inzalo, the listed BEE share scheme established by Sasol, joined the JSE main board in December. It has more than 206 000 shareholders. It will be unwound in 2018.
Bassa expressed confidence that YeboYethu shares would do well for investors.
“The performance of Vodacom South Africa has been phenomenal. There’s been significant investment in the network and in improving service quality and ensuring that people are getting more value for what they paid before,” she said.
Peter Takaendesa, a portfolio manager at Mergence Investment Managers, said the listing presented opportunities for investors to increase their earnings. “On the back of Vodacom’s operational strength, YeboYethu’s shareholders can anticipate great returns.”
YeboYethu has negotiated special fees with the JSE for investors