MTN slumps on Patel resignation - TechCentral

MTN slumps on Patel resignation

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MTN was trading nearly 3% lower in midmorning trading on the JSE on Tuesday after dropping a bombshell on Monday night that its group chief financial officer, Nazir Patel, had resigned “with immediate effect” amid an investigation into him.

MTN said in a statement to shareholders on Monday that Patel had quit amid “certain allegations” that had been made against him. The group did not elaborate on the nature of the allegations.

The group’s share price was trading at R175 at around 11am on Tuesday, off by 2,8% compared to Monday’s close. Earlier in the morning it had traded as low as R174,38/share.

The allegations against Patel are the subject of an ongoing investigation commissioned by MTN, the group said in a short statement to shareholders at the close of markets in Johannesburg.

Patel tendered his resignation to the board on Sunday, MTN said in the statement.

“Mr Patel explained to the company that he does not wish his continued employment with the company to prejudice the company in respect of certain allegations made against him, which are subject to an ongoing investigation which had been commissioned by the company,” it said.

Brett Goschen was named as group chief financial officer board director to replace Patel.  — (c) 2013 NewsCentral Media

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