MTN Group: Company's largest shareholder tackles board following CEO's resignation

Sifiso Dabengway, CEO of MTN Group (OTCPK: MTNOY -0.1%), has resigned his post at Africa's biggest telecom amid the fallout from a $5.2B fine imposed by Nigeria on the company.

Nhleko, the current non-executive chairman has agreed to act as Executive Chairman for a maximum period of six months while the telco identifies a successor for Mr Dabengwa.

"I will proactively deal with the Nigerian regulator and will continue to work with them in addressing the issues around unregistered subscribers as a matter of urgency", Nhleko said in a statement on Monday.

Dabengwa resigned over the weekend after consultation with the board and his financial compensation hasn't been resolved, MTN Group Spokesman, Chris Maroleng, said by phone.

In a statement on Monday, Dabengwa attributed his resignation to "the interests of shareholders".

Barely a week to November 16 deadline set by the Nigerian Communications Commission (NCC) for the South African telecoms firm, MTN Nigeria to pay the 1.4 trillion fine slammed on it, there are indications that top management staff may lose their jobs.

Nigeria is MTN's biggest market with 62 million subscribers.

Dabengwa was once the CEO of MTN Nigeria from 2004 to 2006.

The NCC fine sent shudders down the spine of stock traders as MTN shares slumped more than 20 percent on the Johannesburg Stock exchange.

With the ascension of Nhleko as interim executive chairman, talks will now shift to Abuja, Nigeria's capital as Nhleko's primary focus is to hold talks with the Nigerian authorities to resolve the fine.

Reports also suggest MTN failed to disclose the fine to its shareholders on time.

The kidnappers used an unregistered Sim card from MTN to demand a ransom.

The rating's agencies Moody's and Fitch lowered MTN's credit rating last month because of the Nigeria fine.

They say President Muhammadu Buhari"s no-nonsense "body language' may have contributed to the severity of the fine the NCC slammed on MTN".