Latest News
MTN signs agreement to invest $295 million in Iranian telecoms company
News Highlight
Under the agreement, MTN will buy a 49 percent stake in Iranian Net and help the Iranian company develop a fibre network over the next five years.
MTN Group, Africa’s largest mobile operator, announced today that it has signed a non-binding agreement to invest about $295 million in Iranian Net – the fixed line broadband network operator.
Under the agreement, MTN will pay 540 million rand ($40 million) to buy a 49 percent stake in Iranian Net. The Johannesburg-based company will also invest an additional 3.4 billion rand in both equity and loans to help the Iranian company develop a fibre network over the next five years, according to Reuters.
“The preliminary agreement remains subject to finalizing suitable transaction agreements. Iranian Net has a national licence for the construction and operation of an optical data transmission network and fibre optic access network across Iran,” MTN said. “This investment, should it be completed, represents an opportunity to capitalize on the continued strong growth expected in the Iranian broadband market, with an initial focus on eight of the main cities.”
The Iranian Net deal is MTN’s second deal in the Middle Eastern country this year. In February, MTN invested an undisclosed amount in Iran Internet Group, which operates a popular car-hailing platform called Snapp.ir.
MTN’s Iranian operation – MTN Irancell – is the group’s second largest subsidiary after MTN Nigeria, with about 48 million subscribers. The lifting of international sanctions on Iran last year has allowed MTN to repatriate $1 billion in trapped dividends from its 49 percent stake in Irancell.
Related News
Latest Blogs
- Is protest an endangered human right of Nigerians?
- Issues in using price control in Nigeria
- CBN’s target of 21 percent inflation rate
- Why electricity privatisation failed (1)?
- It's stability, stupid! Stability of the naira is key to Nigeria’s growth
Most Popular News
- IFC, partners back Indorama in Nigeria with $1.25 billion for fertiliser export
- Univercells signs MoU with FG on biopharmaceutical development in Nigeria
- CBN settles backlog of foreign exchange obligations
- Ali Pate to deliver keynote speech at NDFF 2024 Conference
- Euromonitor forecasts Sub-Saharan Africa GDP to grow to $4.5trn by 2040
- Afreximbank-backed Geometric Power commissions Aba project