Vodacom’s BBBEE scheme “YeboYethu” is in the process of unwinding as there’s a new deal in the pipeline. Yesterday the company came out with an exciting SENS announcement where a special dividend was officially declared. In the SENS the company said the following:
“Accordingly, the YeboYethu board of directors has resolved to pay a special dividend up to a maximum of R 3 261 189 876 out of income reserves, which equates to 7300 cents per YeboYethu ordinary share.”
This is excellent news for the black investors who have been patient holders of the shares for the past ten years. At the current share price of R120, the special dividend is a 61% gross dividend yield. For the investors that have been holding since day one, this dividend is 2.92 times (in hard cash) their original investment of R25 a share. An investor who invested the minimum R2500 in 2008 will receive R7 300 in cash and still be left with their shares.
This BEE deal has delivered fantastic value for black investors. In terms of capital appreciation, R2500 invested in 2008 will see value unlock of approximately R16 000 or 6.4 times the original investment. I know investment professionals that wish they could replicate these kinds of returns.
The new BBBEE transaction is currently underway, and if you are a qualifying BBBEE investor please speak to your financial advisor on how you can get involved.