MTN ready to pump billions into Iran
MTN said on Monday that it has agreed, on a non-binding and preliminary basis for now, to invest R540 million into Iranian fixed broadband provider Iranian Net. The investment will give it a 49% stake in the company.
However, it is expected that further investments, running into billions of rand, will take place over the next five years as the broadband company rolls out infrastructure across the Middle Eastern nation.
It expects to invest R3.4 billion in the form of both equity and loans to facilitate Iranian Net meeting its roll-out targets over the next five years, the Johannesburg-listed telecommunications operator said in a statement.
“The preliminary agreement remains subject to finalising suitable transaction agreements,” MTN said.
“Iranian Net has a national licence for the construction and operation of an optical data transmission network and fibre-optic access network across Iran,” it said.
“This investment, should it be completed, represents an opportunity to capitalise on the continued strong growth expected in the Iranian broadband market, with an initial focus on eight of the main cities.”
MTN is already a big investor in Iran, holding 49% of MTN Irancell, a major mobile network operator.
MTN Group’s share price was trading 1.95% higher at R118.77 at the close on Monday. It has declined by 9.6% in the past year.
This article was first published on TechCentral. To access the original, please click here.
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Amir
May 9, 2021 at 5:07 pm
What MTN stands for and where is it from? I can Google it but the reporter should have explained the abbreviation of the letters.