MTN Group shares and that of its Black Economic Empowerment (BEE) scheme MTN Zakhele regained some of the lost ground on Monday after the mobile phone operator said it has appointed its Phuthuma Nhleko as executive Chairman after the group CEO resigned. By Gugu Lourie
The MTN and MTN Zakhele shares have recouped the lost ground they lost due to the Nigerian troubles that have rocked the mobile phone operator.
MTN shares gained 1.71% at R160.14 by 11:58am on Monday while MTN Zakhele shares rose 12.42% at R77.01.
The shares gained after MTN group announced earlier on Monday that it has appointed Phuthuma Nhleko as executive chairman in a temporary capacity as Sifiso Dabengwa resigns as CEO.
“Due to the most unfortunate prevailing circumstances occurring at MTN Nigeria, I, in the interest of the Company and its shareholders, have tendered my resignation with immediate effect,” stated Sifiso Dabengwa.
Nhleko, the current Non-executive Chairman has agreed to act as Executive Chairman for a maximum period of 6 months while the Company identifies a successor for Dabengwa.
The stock has been hard hit by skittish investors who were worried about a Nigerian proposed R71 billion fine, which is due to be paid by the South African-based mobile phone operator by 16 November 2015 if a settlement is not reached.
These news wiped off more than R80 billion in the past week on MTN’s market value.
MTN Zakhele was transferred from the over-the-counter) OTC) to the JSE’s BEE board from November 5.
On listing the MTN Zakhele shares followed MTN lower, dropping from R14 billion to R11.4 billion.