The drama continues at MTN. This time the biggest of them all to fall is the CEO, who resigns this morning, a statement released by the company -> MTN - Executive Chairman appointment. As you can clearly see, Sifiso Dabengwa has resigned, it does not say with immediate effect, and means that there is a lot more that meets the eye in their Nigerian operation. That is exactly NOT what the situation needed, more uncertainty.
The only good news I suppose is that the ex CEO, a man who ran the business for nearly a decade is going to step into the breach, assuming the role of executive chairman. The company will have six months to search for a new CEO. And as the group articulates: "The engagement with the Nigerian authorities on the Nigerian Communications Commission fine is continuing and shareholders will be advised as soon as there are any material developments on this matter."
And as such we continue to recommend that you do nothing until there is clarity. Remember that if there is little to work with here, we can either presume that the outcome is going to be bad, as the CEO is resigning or we can presume that this could be a face saving outcome, an executive head rolling as they failed to abide by the Nigerian laws and a lower fine levied. Again, too little information to go on, be guided by the company. I suspect that the share price will open lower, and be under pressure, there is no good news in a CEO resigning, right?