Africa's largest cellular operator, MTN, is looking for a new CEO, as Phuthuma Nhleko will step down by March next year, after almost a decade at the helm of the company.
Since Nhleko's appointment at the helm of the company in July 2002, it has grown from turning over R19 billion to boasting revenue of R73 billion in the year to December, in the latest full-year figures available.
Nhleko was appointed in July 2002, after spending nine years at the helm of Worldwide African Group. Nhleko will not be renewing his long-term contract of employment, which ends at the end of June, but has agreed to keep his current role until March next year to facilitate a seamless transition.
At the end of January, analysts were calling on the company to clarify what would happen when Nhleko's contract expired in mid-year.
Chris Gilmour, Absa Investments analyst, this morning said the move seems to indicate a change of guard at the top. “MTN may well see the need to hand over to a new generation of management.”
Nhleko says: “I have given this decision very careful consideration. I feel it is the right time to secure the next generation of leadership for the group - and the right time for me personally to start thinking about the next phase of my career.
Staying on?
Chairman Cyril Ramaphosa thanked Nhleko for his contribution to the company. “Under his tenure, MTN has grown into a leading emerging market success story and expanded to become the number one provider of mobile telecommunications services across Africa and the Middle East.”
Ramaphosa added: “We have mutually agreed to explore other options for an ongoing association between Phuthuma [Nhleko] and the group post his service as president and CEO.”
A similar arrangement between Vodacom and former CEO Alan Knott-Craig has seen the cellular company in hot water recently.
Knott-Craig retired as the head of SA's largest mobile operator in September 2008. At the time, Vodacom explained he would be kept on as a consultant to the CEO. However, recent media reports have lambasted Vodacom for not properly informing shareholders of the relationship.
MTN's shares were marginally up 96c on the back of the news to R112.86 this morning.
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