* CEO to leave before her contract expires
* Telkom struggling to turnaround
(Adds details, background)
JOHANNESBURG Nov 5 (Reuters) – South Africa’s Telkom
said on Monday its chief executive would step down
before her contract expires as the telecoms company struggles to
craft a convincing turnaround strategy.
Nombulelo Moholi, who was appointed to the position in April
last year, has given the fixed-line operator the requisite
6-month notice, the company said in a brief statement.
Stung by declining fixed-line usage and an expensive, failed
attempt at expansion into Nigeria, Telkom launched a mobile
phone unit that some analysts have said lacked strategic logic.
Shares in the company are down nearly 40 percent so far this
year, underperforming a near 20 percent gain the All-share index
and underscoring the lack of investor confidence in the
stock whose top shareholder is the South African government.
In June, the government, which owns nearly 40 percent of
Telkom, rejected South Korea’s KT Corp offer for a
20 percent stake in the company.
(Reporting by Tiisetso Motsoeneng; Editing by Ed Stoddard)
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