The share price of Vodacom’s B-BBEE investment scheme, Yebo Yethu, has recorded significant gains over the past three months or so to reach an all time high of R126.00 per share in the middle of June. It has since pulled back to settle just above the R100.00 per share mark which still reflects remarkable gains from the R70.00 levels of three months ago.
The rally was on the back of the approaching 2018 maturity date and the attendant news. The scheme was set to mature and come to an end on the 8th of October 2018. Ordinarily, the scheme would be wound up on that date and its capital distributed to investors. But Vodacom has chosen to extend it for another 10 years via injection of further capital and by graduating the scheme’s exposure from the South African operations to the group/international operations.
That has raised demand for the Yebo Yethu shares which has propelled its share price. It’s good news for investors who’ve stayed the course. Issued in 2008 for R25.00 per share, the Yebo Yethu shares started trading at R55.50 on the JSE’s BEE board on 11 August 2016. This means they have recorded growth of more than 200% from the 2008 entry price of R25.00. This return excludes the dividend set to be paid to investors on unwinding of the old deal.