Telkom says there is no link\u00a0between the suspension of its chief financial officer, Jacques\u00a0Schindeh\u00fctte and speculation regarding possible insider trading.<\/p>\n
Shares in Telkom were flat in trade on the JSE on Friday at R26.95, having lost 4% iin the prior session.<\/p>\n
Telkom said in a press statement on Friday (25 October) that it has noted speculation that the suspension of Schindeh\u00fctte may be related to the purchase of shares made by the CFO on 30 September 2013.<\/p>\n
“Telkom confirms that there is no connection whatsoever between the suspension of Mr Schindeh\u00fctte and the Insider Trading enquiry instituted by the JSE in relation to Mr Schindeh\u00fctte\u2019s\u00a0 trade in Telkom shares on 30 September 2013.”<\/p>\n
“Telkom further confirms that the suspension has no connection with and will not have an impact on the financial performance of the company.<\/p>\n
“The suspension relates to allegations of personal misconduct levelled against Mr Schindeh\u00fctte and which came to the Board’s attention through a whistleblower. “<\/p><\/blockquote>\n
Telkom said that its board initiated a process which included an investigation, using the services of an external law firm.\u00a0 As part of the process, Schindeh\u00fctte was given an opportunity to respond to the allegations.<\/p>\n
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 Schindeh\u00fctte was taken after obtaining legal advice,” it said.<\/p>\n
“Mr Schindeh\u00fctte 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.\u00a0\u00a0The 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.<\/p>\n
Schindeh\u00fctte had made a\u00a0share purchase \u00a0in the group on 30\u00a0
September,\u00a0amounting to R5.96 million at R24.45\u00a0rand\u00a0a\u00a0share.<\/p>\n Telkom announced the dealing on 2 October, noting that \u201cclearance has been obtained in respect of these dealings in securities on the open market.\u201d<\/p>\n
Telkom then put out a trading statement on 8 October\u00a0advising that headline earnings per share and basic earnings per share for the six months ended 30 September 2013 were\u00a0anticipated\u00a0to to be at least 20% higher than those of the prior comparable period.<\/p>\n
In July, the group CFO also purchased 55,520 shares at an average price of R18.07 at a cost of R994,340<\/p>\n
More on Telkom<\/h3>\n
Mystery around Telkom CFO suspension<\/strong><\/a><\/p>\n
More on Telkom<\/h3>\n
Telkom suspends finance head Schindeh\u00fctte<\/strong><\/a><\/p>\n
Telkom appoints new CIO<\/strong><\/a><\/p>\n
Telkom undervalued: analyst<\/strong><\/a><\/p>\n