The proposed extension of conditions for MTN Zakhele Futhi’s (MTNZF) B-BBEE deal has been commended for providing shareholders with potential future upside. Peter Takaendesa, head of equities at Mergence Investment Managers, feels that extending the terms of the empowerment plan, which was set to expire on November 22, 2024, will provide better value to shareholders. “If approved this would give MTNZF shareholders potential upside should the MTN group share price recover from the major foreign currency shocks seen so far and it stays above the R90 level until they unwind the transaction. Unwinding now is likely to crystalise the value lost and most of the proceeds will go towards settling debt within the MTNZF structure,” he said.
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