* CEO to leave before her contract expires
* Telkom struggling to turnaround
* Shares fall more than 2 pct
(Adds analyst comment, shares)
By Helen Nyambura-Mwaura and Tiisetso Motsoeneng
JOHANNESBURG, Nov 5 (Reuters) – South Africa’s biggest
fixed-line phone company Telkom SA lost its fifth chief
executive in seven years on Monday, less than a month after the
departure of its chairman and several directors.
The future of the state-controlled telecom, whose shares are
down 40 percent this year, has been thrown into doubt by
tentative government plans to renationalise and force it to push
through a costly expansion of rural internet access.
The government in June also rejected a $385 million bid for
20 percent of the company from South Korean group KT Corp
.
Telkom, the bigggest fixed-line operator in Africa, said
that Chief Executive Nombulelo Moholi had given her six months
notice, meaning she will depart in May, about a year before her
contract was due to expire.
The government – which owns a near 40 percent stake and a
further 10.5 percent through the state pension fund – has
discussed ways to finance a buy-out and its communications
minister is due to present a report on the company’s future to
cabinet.
Continued…
