Nhleko discusses exit

Johannesburg, 20 Mar 2008

It is "unlikely" that MTN president and group CEO Phuthuma Nhleko will renew his contract when it comes to an end in June 2010.

Earlier this month, ITWeb revealed Nhleko was rumoured to be seeking an early exit to his contract. At the time, two unrelated sources indicated Nhleko had approached the board with a view to leaving earlier than expected.

The board had been hard at work trying to convince Nhleko to "stay the term", one source said. But some restructuring had taken place in case this was unsuccessful.

Nhleko yesterday rejected these claims: "Who knows what life holds. But I have no intention not to honour my commitments."

As for his options at the end of the current contract, Nhleko said this would be at the board's discretion. However, he believes it would be "most unlikely" that he would accept a renewal.

"By then it will be time to give way to someone brighter and fresher," he explained.

One investor analyst, who cannot be named, says this is a mature approach. "I think this is fair comment coming from Nhleko. He has done a lot of good work at the company and, of course, has made a serious amount of money."

As for possible replacements for Nhleko, the analyst points out that several "bright sparks" joined the company through the 2006 acquisition of Investcom.

"I would favour one or two of these candidates, but you will probably see a push for a local empowerment entrant. Of course, if an Investcom candidate was successful in getting the top job, you would probably see a few high-profile people exiting the company," he explains.

Meanwhile, MTN yesterday announced that independent non-executive directors Peter Woicke and Dr Mamphela Ramphele had tendered their resignations with effect from 18 March. Both were appointed to the board at the company's June 2006 annual general meeting.

ITWeb has also been informed that several executives are currently unavailable as the company is undergoing a "major internal restructure".