Telkom tanks on Moholi resignation - TechCentral

Telkom tanks on Moholi resignation

Investors sold off Telkom shares on Monday following the resignation of group CEO Nombulelo Moholi. The share price was almost 3% lower at R17,69 in late morning trade on the JSE, after briefly changing hands at as low as R17,51.

Telkom announced on Monday morning that Moholi has tendered her resignation to the board but that she would work a required six-month notice period. TechCentral understands Moholi informed the board of her intention to leave on Friday.

Her resignation comes just 10 days after communications minister Dina Pule voted at Telkom’s annual general meeting (AGM) to block the election or reelection of four of its nonexecutive directors, including its lead independent nonexecutive director Sibusiso Luthuli, who had been expected to replace former chairman Lazarus Zim, who retired at the AGM.

Telkom’s share price has declined by 40% in the past 12 months as shareholders fret about the company’s poor financial performance and interference by government in its management and strategic direction.

In May, cabinet decided not to support a deal to sell 20% of Telkom’s equity to Korea’s KT Corp, a move Zim described at the AGM as “tragic” for the company and one that would make it harder and more expensive to raise much-needed capital to expand its mobile and fixed broadband networks in the face of growing competitive threats.  — (c) 2012 NewsCentral Media

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