Africa's largest cellular operator, MTN, has yet to make an announcement about what will happen when CEO Phuthuma Nhleko's contract expires later this year.
While the company says it will make a statement timeously, and has several months to do so, analysts say the market needs to know what will happen as soon as possible.
Nhleko was appointed in July 2002, after spending nine years at the helm of Worldwide African Group. His contract is due to expire mid-year after eight years heading up the company.
MTN says Nhleko's current contract runs until June. “The MTN group CEO and the board will engage and make a decision in the best interests of MTN with regards to the CEO's contract. Once a decision has been made, MTN will advise the market timeously on the way forward.”
Don't wait
However, analysts are calling on the company to clarify the situation.
MTN CFO Rob Nisbet was replaced with Nazir Patel, after Nisbet relinquished his board position at the end of September last year.
“It's not clear if anyone is being groomed for the top job,” says Absa Investment analyst Chris Gilmour. He adds that this could concern the investment community.
Gilmour notes that MTN needs to make its intentions known to the market, and clarify whether Nhleko will stay or be replaced.
Irnest Kaplan, MD of Kaplan Equity Analysts, says Nhleko has had a good tenure at the company. However, should he move on, MTN will need to indicate if he will be replaced with someone of an equal calibre.
The company's shares were trading 105c lower in early morning trade at R105.70.
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