Is MTN's Nhleko leaving?

Johannesburg, 05 Mar 2008

MTN Group president and CEO Phuthuma Nhleko is rumoured to be looking to exit the cellular giant.

Two unrelated sources have indicated that Nhleko has approached the board with a view to cutting short his contract. Last year, Nhleko renewed his contract to June 2010.

One source, who cannot be named, says the company has done some restructuring of its executive team to accommodate Nhleko's possible exit.

"Some of this restructuring happened in February and more is likely to follow. MTN's ex-head of regulatory affairs, Nkateko Nyoka, left because he saw the restructuring coming," he explains.

Another source adds that the board has been hard at work trying to convince Nhleko to "stay the term".

MTN's group executive of corporate affairs Nozipho January-Bardill has dismissed the rumours.

"The MTN Group can confirm that there is no basis for speculation about Nhleko leaving the company. The group recently renewed his contract and he is committed to honouring it to its full duration," she says.

Investment analysts have speculated that it is unlikely that Nhleko would want to exit the organisation before the Newshelf scheme matures. MTN employees will be able to cash in their shares in the first half of next year.