UMANDE Unit Trust (UUT), a collective investment scheme, has officially launched its financial strategy that will enable the smallest retail shareholders access the Vodacom Tanzania shares by pooling their resources. The strategy also invites Tanzanians in the Diaspora, as well as other foreign investors and their fund managers to buy Vodacom shares through the purchase of UUT units in its Capitalization Fund.
Addressing journalists in Dar es Salaam today, Mr. George Fumbuka the CORE Securities Limited Managing Director whose company pioneers UUT, said through the program, small investors and those with low incomes are going to own units rather than shares though the fund will be fully invested in Vodacom shares. The minimum to buy Vodacom shares is Tshs 85,000 (100 shares @ 850/= each), he said. “This is in the Prospectus; if you don’t have 85,000, that’s it, you cannot participate in these shares”.
“This is of course bad news to those Tanzanians who cannot afford that minimum but otherwise have resources but less than 85,000. My message is that is it still possible to access Vodacom shares even if you don’t have Tshs 85,000. Fortunately, for as low as Tshs 15,000 only, we have a scheme that enables investors to access the shares and enjoy part of this national cake. How? By using the tried and tested Tanzanian method of pooling efforts: Harambee! Umoja ni Nguvu! Haba na Haba hujaza kibaba!
According to Mr Fumbuka, whereas the Vodacom shares are not allowed to foreigners, by investing in Umande’s capitalisation fund, foreign investors will access all the benefits and rights that go with share ownership without necessarily owning the stock.
“They will get dividends and capital gains as usual because the value of the Fund’s units will be proportionate to the value of the underlying shares. This will go a long way toward consummating the IPO fully.’’ He clarified.
He said the scheme has received Legal Opinion and obtained final clearance from the Capital Markets and Securities Authority (CMSA).
“So we strongly advise small retail investors to invest through Umande Unit Trust as they would otherwise fail to qualify because of the minimum amount. Also we would like to invite foreign investors and their fund managers to buy units of UUT and access the benefits and upsides of Vodacom and other telecoms IPOs as the shares are out of reach of foreigners,’’ he said .
Vodacom Tanzania has become the first telecoms company in Tanzania to implement the Electronic Postal and Communications Act, as amended by the Finance Act 2016, which requires all telecommunications licensees to list at least 25 per cent of their shares on Dar es Salaam Stock Exchange.
The firm plans to raise Tshs 476 billion ($213 million) in an offering of 560 million shares at Tshs 850 each, according to a prospectus issued recently.
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