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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.