Phuthuma Nhleko, MTN's former CEO, has rejoined the company as chairperson after Cyril Ramaphosa retired yesterday, following his election last year as deputy president of the African National Congress.
MTN, Africa's largest cellular operator, concedes that Nhleko is not an independent chairman as he had a break from the group of just more than two years, but says the board is happy the current board structure, which includes a lead independent director, will "provide the appropriate level of governance for MTN and its shareholders".
Nhleko's appointment follows a "comprehensive review" by the board, which was overseen by lead independent non-executive director, Alan van Biljon. He steps into the post today.
After nine years leading the group, Nhleko left in March 2011, following his March 2010 announcement that he would not to renew his contract when it came up for renewal in June 2010. He was replaced by Sifiso Dabengwa.
According to Who's Who, Nhleko has held several other directorships, of Anglo American, Nedcor Investments Bank Holdings, and Old Mutual Life Holdings. The cellular company believes Nhleko's "previous association with MTN and his experience in the telecommunications industry will benefit the group".
Valuable contribution
MTN thanked Ramaphosa, who was chairman since 2002, and said "his valuable contribution and strong leadership have been key drivers in the ongoing success of the group". MTN currently has 197.4 million customers after boosting its base 4% in the four months to April, and expects to hit 200 million by mid-year.
The group has seen revenue gain 5.6% year-on-year in the four months to April, although it did not provide a turnover figure in yesterday's update. At year-end, its income was R135 billion after it grew 10.9% in the 2012 year.
Ramaphosa is also founder and chairman of the Shanduka Group, headed by Phuti Mahanyele, which last year bought a $335 million (about R3 billion) minority stake in MTN Nigeria, the cellular company's biggest unit. After his election as deputy president of the ANC, Ramaphosa said he would review his business interests.
"This is necessary to address any potential conflicts of interest, and to ensure that I can adequately perform the responsibilities of this position. In consultation with the ANC national officials, I am undertaking a process of engagement with several stakeholders on the implications of my election to this post," he said.
Ramaphosa's net worth was estimated at $275 million by Forbes magazine in 2011, making him the 36th richest person in Africa.
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