Nedbank calls on Eyethu shareholders

The Nedbank Eyethu shares are currently in maturity phase, three years after the ground breaking empowerment scheme was launched.

So far 20 percent of the shareholders are opting to retain their shares with 40 percent cashing in on their shares.

“We are urging the remaining 40 percent of shareholders to indicate on what they would like to do with their shares,” says Nedbank Managing Director Rob Shuter.

According to Shuter, shareholders were alerted on the approaching end of the 36 month lock in period.

“With these figures in mind, Nedbank is pleased that South Africans are considering share ownership as an integral vehicle in promoting a culture of savings,” says Shuter.

The initial share-offer was based on two pillars; broad-based black empowerment and instilling a culture of saving. Nedbank believes the Eyethu Scheme has achieved both.

Launched in 2005, the Scheme managed to attract over 30000 participants.

“Not only has the Scheme assisted the bank in exceeding the ownership targets of the Financial Sector Charter (FSC), it has also supported Nedbank’s positioning as a bank for all South Africans paving way for economic transformation,” adds Shuter.

According to Shuter Nedbank managed to introduce the right empowerment deal that represented great growth opportunities.

“With the current unstable economic conditions, shareholders are still guaranteed capital protection and one bonus share for every three shares allocated,” says Shuter.

To date Nedbank has paid over R60 million to over 30 000 shareholders in dividends.

The retail part of the scheme which is aligned with Nedbank’s strategy of growing the bank’ s share of the retail and SME market will be distributing more dividends to shareholders whose shares are approaching maturity.

Shareholders, who wish to keep their shares, will either transfer their shares into an existing share trading account or Nedbank will open a share trading account on their behalf at the bank’s cost.

“Clients will be responsible for any costs of share trading involved going forward. By transferring shares into a share trading account, Eyethu shareholders will continue to be Nedbank shareholders,” explains Shuter.

Nedbank will also be hosting a variety of national roadshows where they will be interacting with shareholders highlighting the success of the scheme to date. Roadshows will be held in the following provinces: Gauteng (21 March), KZN (28 March) and Western Cape (28 March).

“Shareholders will also be contacted via sms. Alternatively they can call the bank’s Molebedi call centre on 0861 393633 to check the progress of their shares,” concludes Shuter.