Telkom’s share price fell by over 8% on Friday after the company announced its CEO, Sipho Maseko, will step down.
Telkom said in a SENS that Maseko will step down on 30 June 2022 and that it is in the process to appoint a successor.
Maseko joined Telkom on 1 April 2013 at a time when the organisation faced severe challenges and helped to turn the business around.
Under his leadership, Telkom evolved from a traditional fixed business to a company with a range of businesses, including mobile, IT, wholesale infrastructure business, and a masts and tower portfolio.
Telkom’s mobile business grew to become the third-largest in South Africa during Maseko’s tenure, with more than 15 million customers generating R20 billion revenue.
He also helped oversee Telkom’s migration from ADSL to fibre, and the number of homes connected with fibre now exceeds the number of homes connected with copper.
In a letter to staff, Maseko said his mission was clear when he took the reins eights years ago – “we must save the company, get it to be sustainable, and able to hold its own in the future relative to its peers”.
“I’m broadly satisfied that this mandate has been fulfilled. Today, Telkom is a stable company. We have de-risked our business, and we have a very clear strategy for each of the business units,” he said.
“We are on a clear and definite path to unlock value for our shareholders, indeed all our stakeholders.”
“So, this is the right time for me to step aside and make way for a new leader able to take Telkom to even greater heights.”
The market did not like the news of Maseko’s departure. Telkom’s share price fell by over 8% on the news – from R44.70 to around R41.00 per share.
Telkom share price
The image below shows the Telkom share price at 13:00 on Friday.