Vodacom’s BEE company lists on JSE

VODACOM’S empowerment company, which sold stock to black South Africans at a discount in 2008, listed on the Johannesburg exchange, a move that furthers the mobile carrier’s chances of winning wireless spectrum in a proposed auction.

YeboYethu shares started trading at R55 yesterday, valuing the company at R792 million, moving to the JSE after over-the-counter trading ended July 15. Vodacom issued 14.4 million shares to black investors at R25 eight years ago.

“The shares will be listed on the BEE (black economic empowerment) segment of the JSE, which has the principal advantage for the company of ensuring the identity of buyers and sellers of the shares are tracked to ensure ongoing empowerment ownership,” said Morgan Jones from Bravura Consulting, which renders services in respect of BEE legislation. “From the shareholders’ perspective, these listings are designed to have benefits including the potential for enhanced liquidity.”

Greater transparency of Vodacom’s black shareholding will improve the wireless carrier’s chances of winning South African high-speed internet spectrum in a proposed auction that the Independent Communications Association of SA, the industry’s regulator, has said may raise $1 billion (R13bn) early next year.

Starting value of YeboYethu shares on the JSE

Companies need 30 percent black ownership to place a bid, according to rules published by the regulator. More than 100 000 black South Africans have participated in YeboYetho, statements on its website show.

YeboYethu is the third company to be listed on the Johannesburg bourse’s empowerment section, which has a capitalisation of R7.5bn. “The JSE believes this will help to foster broadbased share ownership of listed companies by black shareholders,” Donna Nemer, the director of capital markets, said in a statement.

Vodacom’s cross-town rival, MTN Group, was the first company to list on the empowerment section of the JSE, in November. The mobile operator is considering a new BEE system to replace its MTN Zakhele vehicle, which matures in November. The company has said it intends to give an update on its plans before the end of this month.

Vodacom shares gained 0.31 percent to R157.28 yesterday. MTN gained 1.63 percent to R126.20. – Bloomberg

Vodacom Group chief executive Shameel Aziz Joosub and YeboYethu chairman Zarina Bassa.

A barman pours a beer produced by brewing company SAB Miller at a bar in Cape Town in this file photo. The Food and Allied Workers Union is set to meet with SABMiller and Anheuser-Busch InBev today.