MTN CEO Dabengwa Resigns as Largest Shareholder Challenges Board
- Dabengwa is replaced by Chairman Nhleko for up to six months
- The shares pare early losses to trade higher in Johannesburg
MTN Group Ltd. Chief Executive Officer Sifiso Dabengwa resigned, taking responsibility for a $5.2 billion Nigerian fine that’s wiped 16 percent off the value of Africa’s biggest wireless carrier, while its largest shareholder questioned the role of the company’s board in the events.
Dabengwa will be replaced by former CEO and Chairman Phuthuma Nhleko as the company searches for a permanent successor, Johannesburg-based MTN said on Monday. Nhleko, who led MTN for almost nine years until 2011 and increased subscriber numbers 30-fold through rapid international expansion, said he will deal with Nigerian authorities personally over the penalty. Talks are at an advanced stage, according to people familiar with the matter, who asked not to be identified as discussions are private.