Johannesburg – MTN, Africa’s largest cellphone company
by subscribers, will invest R540 million in Iran.
The company, which already has an operation in Iran, will
make the investment into Iranian Fixed Broadband Provider, Iranian Net, for a
49 percent stake.
MTN, which has been trying to repatriate money out if
Iran, says it will also make addition investments of about R3.4 billion both
equity and loans to facilitate Iranian Net meeting its rollout targets over the
next five years.
In a statement issued on Monday, the company notes the preliminary
agreement remains subject to finalising 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.
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,
says MTN.
MTN has recently been battling and has revamped its
executive team following a mammoth R10 billion fine in Nigeria.
It received the find for not cutting off unregistered
mobile users.
Read also: MTN delivers first ever loss
The fine was one of the reasons for its reporting its
first ever loss for the year to December.
In March, the mobile giant reported its first ever loss
of 77c a headline share.
This was despite a 3.3 percent increase in subscribers to
240.4 million.
MTN also noted in March that its earnings before
interest, tax, depreciation and amortisation for the year to December declined
13.2 percent to R51.98 billion as revenue increased marginally by 0.4 percent
to R146.9 billion.
The listed company, with operations in Africa and the
Middle East, noted its results “reflect the most challenging year in the
company’s 22-year history, precipitated by a number of material regulatory,
macro-economic and political challenges experienced across our regions”.
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