Investors are required to contribute R25 per YeboYethu share, estimated to be worth R156.25. This, plus a discount of R15.63 (10%) and funding of R115.62 per share (at an interest rate of 10%) both provided by Vodacom make up the estimated share price.
The advantage is that you are lent money to buy shares in Vodacom SA. There are various disadvantageous, some of which are:
- Lock in period of 10 years. (Since your 10 year money is limited, it must choose investment destinations carefully!)
- Investment in Vodacom SA, an unlisted share making it difficult to gauge performance of investment over the 10 year period. (i.e. throw money in and be in the dark for 10 yrs)
However, should Vodacom Group list on the JSE, you may be able to use the Vodacom Group share price as a proxy or indicator of investment performance.
Offer closes 11 September 2008. If you don’t participate now, engage Matlotlo Group in growing your wealth so you may participate in 5 years’ time by buying from selling Black investors. Then, you will have capital, fewer uncertainties and reduced lock-in period. |