COMPANY COMMENT: MTN feels blowback from hot-spot strategy
As MTN’s past keeps coming back to haunt it, there doesn’t look to be much reason for optimism that the share price will reverse its five-year trend
It’s hard not to have some sympathy for the team of top executives at MTN. They have to cope with the consequences of a growth strategy that focused on setting up or acquiring operations in some of the hottest spots on the globe. For them right now the most damaging of those consequences is that the share price is not only at a five-year low but is significantly below the R120 at which options were awarded to them in December 2016.The details released on Monday of Exxaro’s replacement black economic empowerment (BEE) transaction showed no concessions to Eskom’s outrage when the reduction in black shareholding was first announced seven months ago. The transaction remains one in which a new BEE structure holding 30% of Exxaro’s shares will be put in place, down from more than 50% held by the 10-year structure that recently matured. Eskom’s now suspended acting CEO, Matshela Koko, said in December that Exxaro had "no decency" and was "showing Eskom the finger". Eskom has its own requir...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.