MTN today informed the market that its Chief Executive Officer, Sifiso Dabengwa had resigned.
“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,” Dabengwa said.
“Phuthuma 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 Mr Dabengwa,” MTN said in a statement.
The company added that Phuthuma Nhleko was no stranger to the business as he served as Non-executive Director and Chairman of MTN from July 2001 until June 2002 and thereafter as an executive director, Group President and CEO until March 2011. He has subsequently chaired the Group in a Non-executive capacity for the past two and a half years.
MTN quoted Nhleko as saying: “I will assume responsibility as Executive Chairman for the next 6 months as I proactively deal with the Nigerian regulator and will continue to work with them in addressing the issues around unregistered subscribers as a matter of urgency.”
To ensure compliance with King III, Alan van Biljon will continue to serve as the Lead Independent Director on the MTN board of directors whilst Nhleko takes over executive responsibility.
“Together with the MTN Board, my second priority will be to find an appropriate Chief Executive Officer to take MTN forward. I will then revert to my Non-executive Chairman role,” Nhleko added.
MTN reminded stakeholders that MTN it would continue to inform them of any material engagements with the Nigerian authorities via the Stock Exchange News Service of the JSE Limited (SENS).
“Shareholders are advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.”