Moving on to a quality operation, in our opinion

Moving on to a quality operation, in our opinion, MTN. The company releasing a wave of announcements yesterday. A much bigger implementation of a broad based empowerment deal, with quite a big discount, the deal itself is a little complicated and the release is really long. Plus there is a three year lockup, but that is the norm. If you want the document I have it, email me and I can send it to you. Plus there were a few other announcements that were seen as positive from the broader market, relating specifically to the company's dividend policy, with the possible inception of an interim dividend as soon as August.



Here goes the official announcement, some highlights: "The majority of the markets in which MTN operates have continued to show strong subscriber growth to the end of May 2010 despite increasing competition. Group subscribers increased nearly 10% for the 5 months to the end of May 2010. As the Group's non-SA operations contribute in excess of 70% of MTN's revenue, the continuing strength of the South African currency has again had a negative impact... the level of capital expenditure investments in infrastructure is anticipated to be lower as emerging markets enter a phase of higher penetration. As a consequence of the sector evolution and MTN's anticipated future cash generation, going forward, the Board is able to more easily balance its growth aspirations with that of ensuring improved short term returns to shareholders." See that last line, read, more dividends.




And then lastly, the outgoing MTN chief Phuthuma Nhleko getting a 33 million Rands golden handshake in return for a three year restraint, as far as I understand it. My first reaction like you no doubt might be to balk, but then I had a conversation with a great chap, tops all round and believe that with his knowledge (Nhleko) he would be too valuable an asset to let into the wilderness just yet. If you add up Nhleko's bonuses for '08 and '09 you get to 21 million Rands. Is this too much, 33 million Rands? We ended the conversation by saying something like the guy is way too smart and knows way too much for the company to take any chances.