MTN - extension of the 2016 MTN B-BBEE scheme

19 August 2024 8:14

In November 2016, MTN implemented a BEE transaction in line with its commitment to driving transformation and contributing to the development of South Africa for the future benefit of all South Africans. This gave rise to MTNZF, a ring-fenced, special purpose vehicle, that enabled qualifying black investors to invest in and hold shares in MTN through MTNZF ("2016 MTN BEE Transaction" or "Scheme"). Highlights • The proposed extension of the scheduled maturity date of the Scheme by three years from 23 November 2024 to 23 November 2027 increases the overall term of the Scheme to 11 years (from its inception in 2016). • The proposed extension of the Scheme has merit for MTNZF ordinary shareholders, rather than unwinding the Scheme on the presently scheduled maturity date. • During the extension period, the MTNZF board of directors has the discretion to realise or lock in value by partially or fully unwinding the Scheme and/or by entering into derivative transactions in respect of the MTN shares held by MTNZF, subject to applicable consents. • MTN may assist in expediting any unwind of the Scheme during the extension period through a specific repurchase(s) of the MTN shares held by MTNZF, approval for which will be sought from MTN shareholders at this time as part of the approvals for the proposed extension of the Scheme. • In addition to its own costs, MTN will bear the approved costs incurred by MTNZF in relation to the extension of the Scheme.

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