MTN has reached an agreement with Iran whereby the South African telecommunications company would invest more than $295 million in the Islamic Republic’s Net, a report 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,” MTN said in a statement, Business Day reported on Monday.
The deal, which is still at a non-binding stage, extends MTN’s interests in the Iranian telecoms market that has opened up to foreigners following the 2015 nuclear deal between Tehran and world powers and the ensuing removal of sanctions.
It is the second for MTN in Iran this year after Africa’s biggest wireless networks group invested in Iran Internet Group, which runs a car-hailing app called Snapp.ir.
MTN said it will pay $40 million to buy a 49 percent stake in Iranian Net and will invest an additional 3.4 billion rand in both equity and loans to help the Iranian company develop a fiber network over the next five years.
(Source: Tasnim, under Creative Commons licence)