Vodacom's BEE investors oppose massive payout in Please-Call-Me case
YeboYethu said that the payment would lead to the suspension of dividends to some 80,000 black indirect shareholders of Vodacom. Vodacom's black economic empowerment share scheme, YeboYethu, said it opposes a multi-billion rand payout to an ex-employee as it will wipe out it's shareholders future earnings and investment in the wireless carrier. to increase black ownership, have asked the Constitutional Court to allow them to join the mobile operator’s case as an amicus curiae.
"Payment of compensation of such a high amount would have disastrous consequences for YeboYethu Investment Co. and its shareholders,” according to the documents. The payment would likely lead to the suspension of dividends to some 80,000 black indirect shareholders of Vodacom for many years, the filing said, and cause a so-called trigger event, where the equity value of Vodacom Group shares falls below the debt in YeboYethu.
In papers filed to the court in February Vodacom said the amount determined by the Supreme Court of Appeal would have"devastating consequences" for the mobile-network operator, its employees and its investors.
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