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Rob Shuter to take up new role in 2017 following settlement of telco’s Nigeria fine.
MTN on Monday named high-ranking Vodafone executive Rob Shuter as its new chief executive.
The announcement was made a little over a week after the South Africa-based telco agreed to pay a reduced fine in Nigeria.
Shuter is currently CEO of Vodafone Netherlands. In July 2015, he was also put in charge of the group’s European markets excluding the big four: Germany, Italy, Spain and the U.K.
"After conducting an extensive global search for a candidate suited to the demands of the group’s future strategy, the board has resolved to appoint Rob Shuter as the new group president and CEO," said MTN, in a statement. "Rob may commence as soon as it is practically possible in 2017 but not later than 1 July 2017 after the completion of his current contractual obligations."
Shuter replaces Phuthuma Nhleko, who took on the job of executive chairman on a temporary basis after CEO Sifiso Dabengwa stepped down over his handling of the Nigeria situation. Nhleko will revert to his position as non-executive chairman once Shuter takes up his new role.
MTN Nigeria was fined US$5.2 billion in October last year for failing to disconnect unregistered SIM cards in accordance with the Nigerian Communications Commission’s (NCC’s) timeline.
The fine was later reduced to $3.9 billion, and on 10 June MTN Nigeria and the NCC agreed a further reduction, resulting in a final penalty of $1.67 billion payable in instalments.
According to a report by Vanguard on Sunday, the fine was cut in order to avoid putting off foreign investors.
Meanwhile, in addition to a new CEO, MTN said it has also appointed a new vice president of M&A and strategy; however, the telco did not disclose their name, but said it would be revealed before the end of the month.
