A broad-based black economic empowerment initiative

Transcription

1 A broad-based black economic empowerment initiative information brochure

2 there is great excitement at the Dlaminis family home in the kasi! themba has just heard that from 8 December 2011 Phuthuma nathi shares can be traded. themba is a smart guy! five years ago themba s dad sold his business and gave themba some money. themba took the money and invested it in multichoice Phuthuma nathi shares. themba has decided to KEEP his shares and BUY even more! he knows that if he keeps his shares he could make BIG bucks over-time. all it took to BUY more was a quick phone call! it was easy! 2

3 on 8 December 2011 Phuthuma nathi shareholders as well as other qualifying black South africans can start buying and selling shares in each of the Phuthuma nathi companies. As a shareholder you need to decide what you want to do with your shares. keep, buy or sell your shares Themba decides to: keep his shares it was an easy decision. themba knows that if he holds onto his shares for longer he could get dividends and make a lot more money in the future. thandi, themba s wife is very proud that she has such a clever husband and that he s looking out for their kid s education in the future. 3

4 value of shares the value of shares means the price of a share. how much is a share worth! themba knows that when people buy or sell shares, the share price goes up or down. So the price of the shares is not fixed. He explains: the value of shares is like when you sell a car FOR SAL E! You choose the price that you want to sell it for. if it s a popular car, there may be lots of people interested in buying it and you will probably get the price you want, because the people believe the car is worth what you want to sell it for. if there are not many people interested it may be because they don t think it is worth the price you want to sell it for. You may need to hold onto it for a while before you can get the price you want. Whatever price you and the buyer eventually agree on will be the value of the car at the time. 4

5 t h e m b a d e c i d e s t o BUY more shares. Here s what he did: 1 themba phoned the Phuthuma nathi call centre on If he had internet access then he could have gone to 2 he is an existing shareholder and needed to verify his status. he confirmed his personal details and updated some new information. (To see how Themba verified his information turn to page 8). he first deposited cash (he could have also done an electronic funds transfer) into the Phuthuma nathi bank account BEFORE he placed his order to buy shares. no cheques are allowed. t h e m b a s f r i e n d L e r a t o d e c i d e d t o s e l l s o m e o f h e r s h a r e s Here s what Lerato did: Lerato called the Phuthuma nathi call centre on If she had internet access then she could have gone to She is an existing shareholder and needs to verify her status. She would confirm her personal details and update some new information. (To see how Lerato verifies her information turn to page 8). he gave the call centre agent his shareholder number and password that was sent to him when he verified his status. to place his order to BUY shares themba gave the call centre agent the following information: the Number of shares he wanted to BUY and the PRICE per share he was willing to BUY the shares for. it s As quick And easy As that! She would give the call centre agent her shareholder number and password that was sent to her when she verified her status. to place her order to sell shares Lerato would give the call centre agent the following information: the Number of shares she wanted to sell and the Price per share she is willing to sell the shares for. 5

6 all the steps to Buy Shares If you have internet access then go to If you have no internet access you can buy shares via the Phuthuma Nathi call centre. You cannot buy shares until you have verified your status or registered to become a new shareholder refer to page 8 on how to do this. Also, you must first deposit cash or do an electronic funds transfer into the Phuthuma Nathi bank account BEFORE you place your order to buy shares. No cheques are allowed. An SMS and/or will be sent to tell once your money is in your trading account. Phone the call centre and provide the call centre agent with your shareholder number and password that was sent to you via SMS and/or when you verified your status or registered to become a new shareholder. The call centre agent will then notify you of the cost of the shares, the taxes included and administration fees that you have to pay. If you are happy with the costs, the call centre agent will process your order provided there is enough cash in your trading account, and advise you what cash balance is left over in your trading account. The call centre agent is NOT allowed to give any advice on what price to buy the shares at or on whether or not Phuthuma Nathi is a good investment. You must decide and instruct the call centre agent what price you want to buy the shares at. If you change your mind, you can cancel your order at any time before the shares have traded. If you decide to cancel your order, you will receive an SMS and/or notification. To place your order to buy shares, you need to give the call centre agent the following information: the Number of shares you wish to buy; the Price per share you are willing to pay for the shares. Your order to buy will remain on the system for 90 days (unless you ask for a lesser period) and if it is not matched by the end of that time, the order will lapse and the funds will remain in your trading account. The full cost of your order will be refunded in your trading account. However, if you cancel after part of your order has been successfully matched with the price you want to buy at, the administration cost will not be refunded. If you wish, you may withdraw your cash balance from your trading account. Note: If there has been no buying or selling on your trading account for 90 days, any funds in your trading account will be automatically refunded to you. 6

7 All the steps to sell Shares If you have internet access then go to If you have no internet access you can sell your shares via the Phuthuma Nathi call centre. If you are an existing shareholder you need to verify your status (refer to page 8). Phone the call centre and provide the call centre agent with your shareholder number and password that was sent to you when you verified your status. To place your order to sell shares, you need to give the call centre agent the following information: the Number of shares you wish to sell; the Price per share you are willing to sell the shares for. Your order to sell will remain on the system for 90 days (unless you ask for a lesser period) and if it is not matched by the end of that time your order will lapse and the shares will remain yours. The call centre agent will notify you what the value of your transaction will be, less taxes and administration fees. Once the transaction has been done, the money due to you will either be transferred to your banking account; or if you instruct the call centre agent to do so, it can be kept in your trading account. Note: If there has been no buying or selling on your trading account for 90 days, any funds in your trading account will be automatically refunded to you. The call centre agent is NOT allowed to give any advice on what price to sell the shares at. You must decide and instruct the call centre agent what price you want to sell the shares at. If you change your mind, you can cancel your order to sell at any time before the shares have traded. If you decide to cancel your order to sell, you will receive an SMS and/or notification. Frequently asked questions 1. Why do I need to verify my status? We need to verify your status to ensure that your details on our records are correct. This is to ensure that when you buy or sell shares there are no delays, as the system will not process requests with incorrect details. We also need to ensure that all communication sent to you goes to the correct address. 2. Why is MultiChoice not buying Phuthuma Nathi shares from shareholders? MultiChoice issued the Phuthuma Nathi shares in 2006 as part of its broad based black economic empowerment scheme, which resulted in black South Africans directly or indirectly owning 30% of the company. If MultiChoice buys the Phuthuma Nathi shares, shareholding from black South Africans will be eroded and the company will not be able to fulfill its BEE obligation. 3. What are the fees charged and why do I need to pay fees when I buy or sell shares? The fees charged are 1.5% of the value of the trade, VAT and securities transfer tax. The service to buy or sell shares is managed by an external company on behalf of Phuthuma Nathi and the fees are for the management of the service and tax. 4. What happened to the debt by the Phuthuma Nathi companies? In the last 2 years, MultiChoice declared special dividends and these were used to reduce the debt. This debt has been reduced by almost 30%. 5. How long can I keep my Phuthuma Nathi shares for? You can keep your shares for as long as you want and draw dividends. Dividends are never guaranteed but if the company does well, dividends can be increased over time. 7

8 All the steps to confirm your details or register for the first time If you don t have access to the internet, phone the call centre on and have the following ready: South African ID or shareholder number Cellphone number If your personal details are correct on the system: You will receive a sms and/or with a shareholder number and password. You will be asked a security question and your preferred method of communication You need to sign and send the terms and conditions document that will be posted to you to the address below. 1. Phuthuma Nathi, c/o Trading Helpdesk, PO Box 1266, Bramley, 2018 or 2. deliver it to 71 Corlett Drive, Birnam, 2196 or 3. by phuthumanathi@singular.co.za or 4. fax using the standard fax cover sheet which will be sent to you. If your personal details are incorrect on the system: if some of your details are incorrect the call centre agent will advise on which details need to be updated. if all details are incorrect, you need to send the following documents to the address below left: o Certified copy of South African ID Document o Bank statement not older than 3 months (not internet statement); or o Signed and stamped letter from your bank confirming banking details o Proof of residence e.g. a municipality account or a telephone account that shows your physical address (not older than 3 months); or a signed and certified affidavit. o Change of details form which will be sent to you o Signed terms and conditions If you want to register to be able to buy shares for the first time, you need to call the call centre and an agent will explain what you need to do. Contact details INTERNET Website: phuthumanathi@singular.co.za CALL CENTRE HELPDESK Tel: Fax: ADDRESS Physical address: 71 Corlett Drive Birnam Johannesburg 2196 Postal address: c/o The Trading Helpdesk PO Box 1266 Bramley Johannesburg