More than 50 000 Khulisa investors are set to receive an estimated R98-million in loyalty bonuses next Friday for holding on to their shares in Telkom since its listing two years ago.
The government will make good on its offer to Khulisa investors that, for every five shares they bought during Telkom’s 2003 initial public offering, it will grant one free share as a loyalty bonus.
The Director General of Public Enterprises, Dr M Eugene Mokeyane, stressed that “the foresight of government to increase the rate of investment among historically disadvantaged individuals has borne tremendous fruits”.
He said Khulisa investors now enjoy four times more value — based on last Friday’s Telkom share price of R113 per share — compared with the initial investment two years ago.
Telkom CEO Sizwe Nxasana lauded the government for substantially achieving its objective of broadening the company’s shareholder base, and creating a culture of share ownership.
The government and Telkom announced on Tuesday that the free shares will be transferred to Khulisa investors on March 4. On the same day, Telkom will celebrate two years since listing on the JSE Securities Exchange and the New York Stock Exchange.
When Telkom was listed, Khulisa shares were sold at a discounted rate of R22,40 a share to enable previously disadvantaged groups to participate in wealth creation. Determined to create value for its shareholders, Telkom has delivered a strong financial and operational performance.
In addition to getting extra shares, Khulisa shareholders will also receive R2 per share, this being the total of dividends paid by Telkom in the past two years.
“The Khulisa scheme has afforded Telkom an opportunity to expose broad-based shareholders — many of whom have never owned shares in companies — to the creation of personal wealth,” said Nxasana. — I-Net Bridge