Telkom clarifies Schindehütte suspension
Telkom says there is no link between the suspension of its chief financial officer, Jacques Schindehütte and speculation regarding possible insider trading.
Shares in Telkom were flat in trade on the JSE on Friday at R26.95, having lost 4% iin the prior session.
Telkom said in a press statement on Friday (25 October) that it has noted speculation that the suspension of Schindehütte may be related to the purchase of shares made by the CFO on 30 September 2013.
“Telkom confirms that there is no connection whatsoever between the suspension of Mr Schindehütte and the Insider Trading enquiry instituted by the JSE in relation to Mr Schindehütte’s trade in Telkom shares on 30 September 2013.”
“Telkom further confirms that the suspension has no connection with and will not have an impact on the financial performance of the company.
“The suspension relates to allegations of personal misconduct levelled against Mr Schindehütte and which came to the Board’s attention through a whistleblower. “
Telkom said that its board initiated a process which included an investigation, using the services of an external law firm. As part of the process, Schindehütte was given an opportunity to respond to the allegations.
The telco said that the findings of the external law firm as well as its recommendations were presented to the Board and these were carefully considered. “The decision to suspend Schindehütte was taken after obtaining legal advice,” it said.
“Mr Schindehütte was served with a letter of suspension in which Telkom clearly sets out the allegations levelled against him and to which he is required to respond. The disciplinary hearing will proceed as soon as possible. Stakeholders will be informed of the outcome of the disciplinary hearing once the board has had time to consider the findings,” Telkom said.
Schindehütte had made a share purchase in the group on 30
Telkom announced the dealing on 2 October, noting that “clearance has been obtained in respect of these dealings in securities on the open market.”
Telkom then put out a trading statement on 8 October advising that headline earnings per share and basic earnings per share for the six months ended 30 September 2013 were anticipated to to be at least 20% higher than those of the prior comparable period.
In July, the group CFO also purchased 55,520 shares at an average price of R18.07 at a cost of R994,340
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