It was no cause for concern that MTN’s new group chief financial officer, Ralph Mupita, currently the CEO of Old Mutual Emerging Markets (Omem), did not come from an accounting background, said Peter Takaendesa, a portfolio manager at Mergence Investments.
Both the deputy chief financial officer, Gunter Engling, as well as Rob Shuter, MTN’s new group CEO effective March 2017, were chartered accountants and had strong financial backgrounds, Takaendesa said.
Mupita, who starts in April 2017, holds a BSc Engineering (Hons) and an MBA. After 16 years at Old Mutual, he said the time was right to pursue challenges outside the financial services industry,
"He has the requisite experience and strategic insight in dealing in emerging markets. The most important thing for MTN is that they ensure adequate transformation at the top level," Takaendesa said.
Mupita’s appointment is part of the overhaul of MTN’s senior management team, which saw Stephen van Coller move from Barclays Africa to become MTN’s president of strategy and mergers and acquisitions.
Mupita’s career move comes as Old Mutual plc splits the group into four standalone units. Omem will list on the JSE and London Stock Exchange.
"Since the announcement of the managed separation, the performance of the stock has been disappointing. Investors may possibly have to wait until after the separation for the share to reprice," said Liam Hechter, an Anchor Capital analyst who sees the stock as undervalued.
Mupita’s resignation, effective in three months’ time, would not affect the managed separation. The search for his successor would be launched immediately, Old Mutual said.
"It comes as a surprise that there’s no succession planning and no immediate replacement. You would hope they’ve got a person of sufficient calibre in the company to take over," said Wayne McCurrie, a senior portfolio manager at Ashburton Investments.
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