Wrap Text
Johnnic Holdings Limited, ("Johnnic"), the listed black empowerment
telecommunications, media and entertainment group today announced far-
reaching changes in the management line-up of the Johnnic Group which are in
line with Johnnic's strategy to establish greater operational control over
its assets and to extract maximum value for the benefit of shareholders.
Bob Chaphe, Group CEO of Mobile Telephone Networks Holdings (Pty) Limited
("MTN"), will conclude his contract with MTN at the end of January 2002 to
enable him to eventually return to his home in the USA and spend more time
with his family. He has been at the helm of MTN since 1995 when SBC
acquired an equity stake in MTN. Under Chaphe's leadership, MTN has grown
from a cellular telephone operator in South Africa with 200 000 subscribers,
to one of the pre-eminent communications companies in Africa with
approximately 4 million subscribers, and licences in 6 African countries,
including the two largest, South Africa and Nigeria.
Mr Chaphe will be succeeded by Mr Paul Edwards, the current Johnnic Group
CEO, who will now take over as the Chief Executive Officer of M-Cell Limited
("M-Cell"), the holding company of MTN. At the same time, the management
structures at M-Cell and MTN will be merged to form a unitary management
team which will include Mrs Irene Charnley, previously the Chairman of M-
Cell and Johnnic executive director. Mrs Charnley will take up the position
as Commercial Director where she will be able to continue her role in the M-
Cell businesses in a full-time capacity.
These changes follow the recent appointment of Mr Phuthuma Nhleko as non-
executive chairman of M-Cell and Mr Mashudu Ramano as non-executive chairman
of Johnnic Communications ("Johncom").
Mr Edwards will shed his executive responsibilities at Johnnic and Johncom
to focus on M-Cell and its underlying businesses, namely those of MTN,
Orbicom and M-Cell's other interests. Mrs Charnley in addition to her
current responsibilities within the M-Cell Group will focus on the
opportunities presented by the imminent deregulation of the fixed line
telecommunications industry. Mr Rob Nisbet, MTNH financial director, will
broaden his current responsibilities to include the rest of the M-Cell Group
and will remain as an integral part of the new management structure.
Commenting on the changes, Phuthuma Nhleko, chairman of M-Cell said: " In
response to the indication by Bob Chaphe that he wished to terminate his
services to return home, we have been very fortunate to retain his services
on a consultancy basis until January next year, in order to facilitate a
smooth management transition. Mr Chaphe will be available to provide
ongoing input to the M-Cell Group and more specifically to myself, as he
sees out the remainder of his term. However, with immediate effect, Paul
Edwards, who has played a seminal role in the transformation of the Johnnic
Group, will move into a fully operational role at M-Cell and he, together
with his team, will now have the responsibility of guiding M-Cell and its
businesses through the challenges which lie ahead. MTN is a world-class
operation and I am fully confident that under Mr Edwards' leadership, it
will continue to grow at the same pace as it has in the past."
Mr Nhleko went on to say "Mr Edwards will be ably supported by the current
MTN team, and I have every confidence that this team will be able to take
the company to new heights. Johnnic's focus on telecommunications is a
critical part of its strategy, with M-Cell representing more than 90% of its
asset value and we felt it appropriate to now focus the Johnnic management
team's efforts in this area, especially given that the major restructuring
of Johnnic has been completed. In addition, we envisage further non-
executive director appointments to the M-Cell board, in order to enable M-
Cell to access the experience and wisdom that appropriate appointments will
bring to our business."
Notwithstanding its focus on telecommunications, Johnnic remains committed
to its media and entertainment business and believes in the ability of
Johncom to play a meaningful role in the creation of shareholder value for
the Johnnic Group. Johncom comprises 3 major components, namely media,
headed by Mr Connie Molusi, entertainment, headed by Mr Paul Jenkins and
Johnnic e-Ventures, headed by Mr Neil Jacobsohn. Mr Mashudu Ramano will be
responsible for leading the Johncom team, in his capacity as Chairman of the
Company.
In relation to Johnnic, Mr Jacob Modise, currently Group Financial Director,
will continue with the process of disposing of non-core assets and will be
responsible for managing the affairs of Johnnic and overseeing its
investments in both M-Cell and Johncom. He will remain on the boards of
both companies in a non-executive capacity.
Mr Cyril Ramaphosa believes that the changes represent a maturing of the
Johnnic Group businesses. He says: "With the Johnnic restructuring by and
large completed, we believe it is appropriate to apply greater focus on the
performance of our underlying investments and the management changes reflect
this philosophy. We expect high returns from our investments. We have no
doubt at Johnnic, that members of our management team have built up a solid
track record and we have every confidence in their ability to fulfil the
very high expectations which we have of them."
ENDS
For further info, please contact:
Phuthuma Nhleko, M-Cell Chairman, tel: 011 783-6210, cell: 083 625-9070
Paul Edwards, Johnnic Group CE cell: 083 709-7007
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