MTN’s major investor pushes for board reorganisation
MTN Group’s biggest shareholder, Public Investment Corp (PIC), is pushing for changes at the board level to avoid the regulatory, legal and political disputes that have cut its share price by more than half in the last four years.
Bloomberg reported yesterday that the major investor, which built a 26 per cent stake in the Johannesburg-based telecommunications company by late November, has called for the replacement of Chairman Phuthuma Nhleko.
PIC, Africa’s biggest fund manager and owned by South Africa, also sent a letter to MTN demanding a board reorganisation, resulting in the appointment of more politically connected directors.
Last month, the carrier obliged, announcing Nhleko’s planned departure and replacement, along with other director changes and a new separate group of prominent advisers.
According to Bloomberg, the PIC didn’t respond to a request for comment. Nhleko declined to comment too.
No comments yet