GENERAL TRADING INFORMATION

WHAT IS TRADING?

Trading is the process whereby the shareholders of Welkom Yizani sell their shares to other Black people or Black entities that buy the shares.

WHEN DID TRADING START?

On 9 December 2013 at 09:00

HOW WILL WELKOM YIZANI ENSURE THAT PEOPLE ARE INFORMED ABOUT THE TRADING PROCESS?

Welkom Yizani will give information to the current Welkom Yizani shareholders about trading on the Welkom Yizani trading platform. Current shareholders have received information about the trading platform at the AGM in September. They will also during November 2013 receive an information brochure explaining exactly how the trading platform will work. Current and prospective shareholders alike will find information about the trading platform on the company’s website at www.welkomyizani.co.za and by calling the company’s call centre on 0860 12 12 24.

HOW ARE YOU MAKING SURE THAT THERE IS NO FRONTING?

Rigorous verification processes are in place to ensure that only Black people participate in the scheme. The Welkom Yizani Memorandum of Incorporation determines that, should a person be found not to comply with the BEE requirements, Naspers can only buy that person’s shares back at a very low value.

WHO QUALIFIES TO PARTICIPATE?

Black people and Black Entities, as permitted in Welkom Yizani's Memorandum of Incorporation. To confirm that you qualify, contact the call centre on 0860 12 12 24.

HOW DO I TRADE SHARES?

You can buy or sell shares via the trading platform from 9 December 2013. This can be accessed directly through the internet at www.welkomyizani.co.za or by calling the Welkom Yizani call centre at 0860 12 12 24.

WHAT ARE THE REQUIREMENTS TO TRADE?

Existing Welkom Yizani shareholders need to first verify their status to be able to buy or sell shares.
If you are not a shareholder, you need to register first before you are able to buy shares.
Verification and registration will start in November 2013 and can be done through the internet or via the telephone.
Certain FICA and BEE documentation will be required. These include:
Certified copy of South African ID Document;
BEE Certificate (in respect of Black entities)
Bank statement not older than 3 months (not internet statement); or
Signed and stamped letter from your bank confirming banking details; and
Proof of residence.
You also need to sign the terms and conditions of the platform.
A trading account will then be opened.

WHAT ARE THE FEES CHARGED AND WHY DO I HAVE TO PAY FEES?

The transaction fees charged for sellers with 430 shares or less than 430 shares is R29 per trade plus value added tax, until such time that Welkom Yizani determines otherwise. For all other trades and for all buyers (irrespective of how many shares they hold), the transaction fees are the higher of 1.5% of the value of the trade or R169, plus value added tax. Buyers will also be liable to pay securities transfer tax.
The fees are for the management of the service and tax. The fees will increase annually in line with the Consumer Price Index.

WHAT HAPPENS IF I CANNOT GET A BUYER FOR MY SHARES?

Your order to sell will remain on the system for 90 days (unless you ask for a shorter period) and if it is not matched by the end of that time your order to sell will lapse and the shares will remain yours.

WHEN WILL I BE ABLE TO TRADE MY SHARES?

You will have been able to trade your Welkom Yizani shares since 9 December 2013. You are able to submit trade instructions either via the online trading platform at www.welkomyizani.co.za or via the call centre on 0860 12 12 24.

FOR HOW LONG WILL THE TRADING PLATFORM BE IN OPERATION?

The trading platform will remain in operation until the Welkom Yizani board decides to discontinue the platform. All shareholders will be informed accordingly.

WHAT ARE THE TRADING HOURS?

Trading hours are weekdays between 09h00 and 17h00 excluding public holidays. Shareholders can load buy bids and sell offers outside of trading hours via the online trading platform at www.welkomyizani.co.za but these will only be matched during trading hours.

HOW DO I ACCESS THE ONLINE TRADING PLATFORM?

Go to www.welkomyizani.co.za and log in using your shareholder number and password.

HOW DO I KNOW WHAT MY SHAREHOLDER NUMBER AND PASSWORD FOR TRADING IS?

An existing shareholder or authorised representative of a shareholder will have received a shareholder number and password by SMS on verification. A new shareholder or authorised representative of a shareholder will receive a shareholder number and password by SMS after their registration is complete.

WHAT DO I DO IF I FORGET MY PASSWORD?

Contact the call centre on 0860 12 12 24 and ask one of the agents to reset your password for you. You will be sent a new password via SMS.

WHAT DO I DO IF I FORGET MY SHAREHOLDER NUMBER?

Contact the call centre on 0860 12 12 24 and ask one of the agents to provide you with your shareholder number..

WHAT IF I DO NOT RECEIVE AN SMS?

Contact the call centre on 0860 12 12 24 to update your cell phone number and reset your password.

HOW DO I CHANGE MY PASSWORD?

Go to www.welkomyizani.co.za, enter your shareholder number and click on Change Password. You will be requested to enter the old password first before changing to the new password.

IF I SUBMIT A TRADE REQUEST BUT I RECEIVE NOTIFICATION THAT IT HAS EXPIRED. WHAT SHOULD I DO?

Once the platform starts operating on 9 December 2013, pending trade instructions will remain in the matching engine for a maximum of 90 days or shorter depending on what you stipulated at the time it was loaded. You will then be able to re-submit a trade request, either via the online trading platform at www.welkomyizani.co.za or via the call centre on 0860 12 12 24, if you wish to do so. The alternative is to do nothing if you no longer wish to sell or buy shares for the moment.

WHO CAN I CONTACT IF I HAVE A QUERY REGARDING THE TRADING PLATFORM?

You can speak to any of the consultants in the Welkom Yizani call centre on 0860 12 12 24. Alternatively, you can email a consultant at welkomyizani@equityexpress.co.za and they will endeavour to respond in the quickest possible time.

HOW WILL I KNOW IF MY TRADE HAS BEEN MATCHED?

You will receive an SMS notifying you that your trade has been matched.

AT WHAT PRICE SHOULD I TRADE MY SHARES?

This is a choice you have to make. Welkom Yizani and its agents are not financial advisors and cannot provide investment or financial advice. You should seek investment advice from a registered financial advisor or broker in this regard. Welkom Yizani merely facilitates the trading process. However, shareholders will have access to the following information on the Welkom Yizani website or via the Call Centre: a history of the last 20 trades and the prices at which the shares were traded, the 5 lowest prices that sellers are prepared to sell their shares at and the number of shares for sale and the 5 highest prices that buyers are prepared to pay for shares and the number of shares for sale.

HOW ARE TRADES MATCHED?

Trade requests (buy bids and sell orders) are first ranked according to the price you are willing to sell at or to pay for a share. Trade requests of the same price are ranked depending on when they entered the market. Any subsequent trade requests will be immediately implemented if it is a buy bid at a price at or above the lowest sell offer in the market or a sell order at a price at or below the highest bid to buy in the market.

HOW DO I CANCEL A PENDING TRADE REQUEST?

Log on to your trading profile on Trading Platform using your shareholder number and password and go to the 'Trading' - 'View / Cancel Orders' section to cancel your pending trade request. Alternatively, you can contact the call centre on 0860 12 12 24 to update these details. Any matches that have occurred in respect of your pending trade request prior to the cancellation cannot be reversed.

CAN I ADJUST THE PRICE ON MY PENDING TRADE REQUEST?

No, but you can cancel the pending trade request and re-submit it at the new price. Any matches that have occurred prior to the cancellation cannot be reversed.

IF MY TRADE REQUEST HAS PARTIALLY MATCHED AND I CANCEL THE REMAINING REQUEST AND RELOAD IT AT A NEW PRICE WILL I BE CHARGED ANOTHER TRANSACTION FEE WHEN THE TRADE MATCHES?

Yes, the resubmitted trade request will be treated as a separate transaction and a transaction fee will apply.

WHAT IS THE TRADING PRICE PER WELKOM YIZANI SHARE?

Live trade and price information will be available on the Welkom Yizani website Trading Platform at all times from 9 December 2013 or you can call the call centre on 0860 12 12 24 during trading hours after this date.

CAN I CHANGE THE METHOD OF COMMUNICATION I RECEIVE RELATING TO TRANSACTIONS ON MY ACCOUNT?

Yes, log on to your trading profile on www.welkomyizani.co.zausing your shareholder number and password and go to the 'Account' - 'Preferences' section to change your communication settings. Alternatively, you can contact the call centre on 0860 12 12 24 and ask an agent to change this for you.

BUYING SHARES

HOW DO PEOPLE BUY SHARES?

You can buy shares directly through the internet or via the call centre, where the agent will take you through a step by step process. These are the key steps you will follow when you buy shares through the internet or via the call centre:
Deposit money into the Welkom Yizani bank account.
Place your order by providing the following information:
- the Number of shares you wish to buy;
- the Price per share you are willing to pay for the shares.
- how long you want your order to last (Enter expiry date).
Confirm and accept cost of the shares, including taxes and administration fees.
Your order will be entered on the platform for potential sellers to view

The buyer's order will be matched and processed if: the price the buyer is willing to pay is the same or higher than the price as that which a seller is willing to sell.

CAN YOU BUY SHARES ON BEHALF OF OTHER PEOPLE?

You can only buy on behalf of a black South African individual or group under certain circumstances - for example as a guardian of a minor, representative of a group or company. You have to first register or verify your status as an authorised person.

HOW MUCH TRANSACTION FEES WILL I PAY TO BUY SHARES?

Transaction cost on each buy transaction payable by the buyer is 1.5% of the value of the trade (the price of the shares being bought) subject to a minimum of R169, plus value added tax. Transaction fees will increase every year in line with the Consumer Price Index.

HOW MUCH TAX WILL I PAY IF I BUY SHARES?

A buyer will pay Securities Transfer Tax (STT) at 0.25% of the value of the trade (the price of the shares being bought) before the shares are transferred into his own name. This will happen as part of the buying process.

WHEN DO I NEED TO DEPOSIT MONEY FOR THE PURCHASE OF THE SHARES?

Deposit money into the Welkom Yizani bank account before you submit your buy bid. Once the funds have been allocated to your trading account you will be able to submit your buy order either via the online trading platform at www.welkomyizani.co.zaor via the call centre on 0860 12 12 24.

WHAT FORMS OF PAYMENTS ARE PERMITTED?

Only cash deposits and EFTs are allowed. No cheques are allowed.

I WANT TO BUY SHARES VIA THE ONLINE TRADING PLATFORM BUT MY CASH BALANCE IS R0.00. WHAT SHOULD I DO?

Deposit money into the Welkom Yizani bank account and ensure that you use you shareholder number as the beneficiary reference. Deposits take 2 to 3 working days to appear on your trading account cash balance and you will be notified as such via SMS. Once the funds have been allocated to your trading account you will be able to submit your buy order either via the online trading platform at www.welkomyizani.co.za or via the call centre on 0860 12 12 24..

HOW MUCH MONEY SHOULD I DEPOSIT INTO THE WELKOM YIZANI ACCOUNT?

That depends on the funds you have available to spend or the number of shares you wish to buy. On the online trading platform atwww.welkomshares.co.za there is a share purchase calculator tool that will assist you in estimating the deposit required based on your requirements.

WHAT ARE THE WELKOM YIZANI BANK ACCOUNT DETAILS?

WELKOM YIZANI INVESTMENTS (RF) LIMITED

Bank Name: First National Bank
Account Number: 62408281484
Branch Number: 204109
Branch Name: Global Transactional Services, Cape Town

I MADE A DEPOSIT INTO THE WELKOM YIZANI BANK ACCOUNT. WHEN CAN I GO AHEAD AND BUY SHARES?

Deposits take 2 to 3 working days to appear on your trading account cash balance and you will be notified as such via SMS. Once the funds have been allocated to your trading account you will be able to submit your buy order either via the online trading platform atwww.welkomsharesor via the call centre on 0860 12 12 24.

I MADE A DEPOSIT INTO THE WELKOM YIZANI BANK ACCOUNT BUT I DID NOT RECEIVE NOTIFICATION THAT IT HAD BEEN ALLOCATED TO MY TRADING ACCOUNT. WHAT MUST I DO?

Email or fax proof of payment to welkomyizani@equityexpress.co.za or0860 12 12 24and put your shareholder number in the subject heading. The deposit will then be manually allocated to your trading account and you will be notified thereof by SMS or email.

CAN I SUBMIT A BUY BID BEFORE MAKING A DEPOSIT INTO THE WELKOM YIZANI BANK ACCOUNT?

No, trades will not be subject to credit risk and therefore a buyer must deposit money into the Welkom Yizani bank account before submitting a buy bid. You will only be permitted to buy shares if you have enough money in the trading account to cover the purchase price, the transaction fee (plus value added tax) and the securities transfer tax (STT).

CAN A BUYER APPROACH A SELLER DIRECTLY AND NEGOTIATE A PRICE?

It is possible for parties to agree a sale offline and put it through as an off market sale. You must contact our transfer secretary at the call centre if you want to transfer shares not using the trading platform.

ARE THERE LIMITATIONS ON HOW MANY SHARES ONE CAN BUY?

Yes, there is a 10% maximum ownership (directly or with others) shareholding rule applicable per shareholder. Any request to buy more than this will not be permitted.

HOW DO I PAY FOR THE SHARES?

Deposit money into the Welkom Yizani bank account and ensure that you use you shareholder number as the beneficiary reference.

I LOADED A BUY BID ON THE TRADING PLATFORM BUT IMMEDIATELY RECEIVED NOTIFICATION THAT IT HAD BEEN CANCELLED. WHY DID THIS HAPPEN?

It is possible that your BEE status has not been verified or, in the case or entity shareholders, your BEE certificate is missing from our records or has expired. Contact the call centre on 0860 12 12 24 to verify your BEE status.

SELLING SHARES

HOW DO PEOPLE SELL SHARES?

You can sell shares directly through the internet or via the call centre, where the agent will take through a step by step process. These are the key steps you will follow when you sell shares through the internet or via the call centre:
To sell your shares, you need to provide the following information:

  • The number of shares you wish to sell
  • The price per share you are willing to sell the shares for.
  • How long you want your offer to stay open (expiry date)

Confirm and accept the likely value of your transaction, less taxes and administration fees.

Your order will be entered into the market for potential buyers to view

The seller's order will be matched and processed if the price of the seller is the same as or lower than the price a buyer is willing to pay for the shares.

CAN YOU SELL SHARES ON BEHALF OF OTHER PEOPLE?

You can only sell on behalf of a black South African individual or group under certain circumstances - for example as a guardian of a minor, representative of a group or company. You have to first register or verify your status as an authorised person.

HOW MUCH DOES IT COST TO SELL SHARES?

Transaction cost on each sale transaction is 1.5% of the value of the trade subject to a minimum of R169 plus value added tax. For sellers with 430 shares or less the transaction cost on each sale transaction is R29 plus value added tax until Welkom Yizani decides otherwise. Transaction fees will increase annually in line with the Consumer Price Index.

HOW MUCH TAX WILL I PAY IF I SELL SHARES?

You should seek tax advice in your personal capacity from a qualified tax practitioner. Welkom Yizani cannot provide you with tax advice. Tax will not be deducted as part of the selling process.

I SOLD MY WELKOM YIZANI SHARES. WHEN WILL I GET MY MONEY?

You can expect to receive the money in your bank account 3 to 5 working days after your sell order has been matched and you have been received an SMS or email notifying you of this.

CAN I KEEP THE MONEY FROM MY SHARE SALE PROCEEDS WITH WELKOM YIZANI?

Yes, the seller can choose to keep the proceeds in his trading account for future use for a limited time. You can request a withdrawal at any time either via the online trading platform at www.welkomyizani.co.zaor via the call centre on 0860 12 12 24.

WILL I EARN INTEREST ON THE MONEY KEPT IN THE TRADING ACCOUNT?

No. Interest is applied to help pay for costs of running the trading platform.

HOW LONG DOES IT TAKE TO PAY THE MONEY ONCE THE SELLING PROCESS IS COMPLETE?

Once the selling process is complete, you can select the following payment options:

  • The money will be transferred to your banking account; or
  • The money will be kept in your trading account if you want buy more shares; or
  • Part of your money will be transferred to your banking account and the balance to remain in your trading account
If you elect to have the money transferred to your bank account then it takes 3–5 working days for the money to reflect in your bank account. If you elect to keep the money in your trading account and there is no activity on your trading account after 7 days, your money will be automatically refunded to you.

WHAT DO I DO IF I WANT TO WITHDRAW MONEY FROM MY TRADING ACCOUNT?

You can request a withdrawal at any time either via the online trading platform atwww.welkomyizani.co.zaor via the call centre on 0860 12 12 24.

WHEN WILL MY WITHDRAWAL REFLECT ON MY BANK ACCOUNT?

You can expect to receive the money in your bank account 3 to 5 working days after your withdrawal request.

I HAVE BECOME INSOLVENT AND MY ESTATE IS BEING SEQUESTRATED. I NEED TO SELL TO SELL MY WELKOM YIZANI SHARES.

You should ask your liquidator to contact the call centre on 0860 12 12 24. Your estate will be permitted to transfer your shares to an eligible Black Person having at least a similar or higher BEE status/rating than yourself, in terms of the MOI.

TRANSFERS

IF I WANT TO DONATE/TRANSFER MY SHARES TO MY DEPENDANTS, RELATIVES AND FAMILY HOW DO I DO THAT?

Contact the Welkom Yizani call centre on 0860 12 12 24. These requests are handled by the transfer secretaries.

MY RELATIVE HAS DIED AND HAS A WELKOM YIZANI SHARE CERTIFICATE. WHAT MUST I DO?

Contact the call centre on 0860 12 12 24. Your relative's estate will be permitted to transfer the shares to an eligible Black Person having at least a similar or higher BEE status/rating than your deceased relative, in terms of the Memorandum of Incorporation of Welkom Yizani.

WHY IS MEDIA24 NOT BUYING THESE SHARES?

Media24 launched the Welkom Yizani scheme in 2006 as part of its broad-based black economic empowerment process, which resulted in black South Africans owning indirectly 15% of Media24 Holdings. If Media24 buys the Welkom Yizani shares, shareholding from black South Africans will be eroded and Media24 will lose its BEE status.



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