MTN Group Ltd., Africa’s largest wireless operator, fell to the lowest level in almost four weeks after Chief Financial Officer Nazir Patel quit, citing undisclosed allegations against him.
MTN dropped 2.8 percent to 175 rand by the 5 p.m. close in Johannesburg, the lowest since June 26. Volume was about 1.2 times the three-month daily average, according to data compiled by Bloomberg.
Patel resigned on July 21 and was replaced by Brett Goschen, chief executive officer of the Nigerian business, amid an investigation, Johannesburg-based MTN said in a statement yesterday. Patel didn’t want his employment to prejudice the company with respect to “certain” allegations made against him, it said. MTN didn’t specify the nature of the probe.
“Change in management is never good for any operation,” Alastair Jones, a London-based analyst at New Street Research LLP, said in a phone interview. “Not only are you changing the CFO of the group, you’re also changing the CEO of the biggest operation within their business. That immediately raises question marks.”