NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
MTN to invest fresh R540m in Iran despite risk of not being able to repatriate funds

By News Express on 09/05/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 729


MTN has reached a nonbinding preliminary agreement to invest R540m in Iranian Net to widen the telecommunication group’s reach in that country even as it faces the risk of not being able to repatriate funds from it.

The investment in the fixed-broadband provider, with further investments of about R3.4bn in equity and loans over five years, will secure a 49% stake in Iranian Net for MTN, and add to MTN Irancell and Snapp.ir, the country’s answer to taxi-hailing app Uber.

“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,” said MTN.

Iranian Net has clinched a licence to build and operate an optical data transmission network and a fibre-optic access network across Iran. The deal is still subject to the conclusion of final transaction agreements.

But MTN has previously struggled to repatriate funds from the country, with MTN Irancell paying out only five years’ worth of dividends amounting to €468m earlier in 2017. The Iranian subsidiary also repaid a €425m loan to MTN.

“The cash-repatriation problems have eased significantly [after] the easing of sanctions on Iran,” said Peter Takaendesa, portfolio manager at Mergence Investment Managers. “There is always a risk of geopolitical events affecting Iran again, so MTN needs to balance that risk with the significant growth [in] the Iranian market.”

Consumers in Iran offered significant growth potential in the long term, supported by a population of 80-million people, Takaendesa said. “MTN Iran reported 77% mobile data revenue growth for the quarter ended March 2017,” he said.

MTN investor relations head Nik Kershaw said the data growth was driven by improved 3G and 4G penetration. “Iran is our highest market around 3G or smartphone penetration We have seen a very strong performance around that.”

The group reported 48-million subscribers in Iran, up 1% on the previous quarter.

“Telecoms companies globally are moving more towards offering converged fixed and mobile connectivity services, so the proposed transaction would play into that theme if concluded as proposed,” said Takaendesa.

Converged services would help MTN capture expected strong growth in data consumption in consumer and corporate markets, he said. While corporate customers were early adopters of fibre networks, the consumer market was increasingly doing so for home use.

“Wireless network operators also require fibre networks to link up their base stations to provide faster wireless data services.

There are therefore several ways the Iranian Net transaction could complement MTN’s existing mobile offering,” said Takaendesa.

•Text courtesy of Business Day SA.

 

Source News Express

Posted 09/05/2017 9:30:12 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Fierce fighting as Boko Haram ambushes Chief of...

Do you have a vision? Are you fulfilling...

Senate queries Ministry of Education’s 2016 Budget, frowns...

Buhari has all it takes to win March...

US citizen detained without trial in Cameroon for...

Anambra Catholic Bishop accused of property grabbing, threat...

APC guber aspirant, Tilije, dumps party for PDP...

Canada trains Nigeria Police on serious crime investigation,...

El-Rufai moves to end 40-year water scarcity, commissions...

Buhari: Urgency of New Petroleum Industry Law

Fan dies of heart attack while watching tense...

Niger Deltans warn Buhari

 

Latest News Ex-militants threaten to resume hostilities 2019: APC governors adopt Buhari as consensus candidate Melaye vs Police: Embattled Senator’s spokesman clears the air Dutch cargo ship hijacked off coast of Nigeria, seize 12 crewmembers BREAKING: Senate adjourns over Melaye, summons IGP Ibrahim Idris Daniel woos Afenifere, says Atiku’s Presidency will support restructuring of Nigeria Oshiomhole’s endorsement as APC National Chairman as childish: Odigie-Oyegun Cable TV front desk officer slammed with 22-count charge for N14m fraud, remanded in prison custody NPA bans return of empty containers to seaports Dino Melaye’s arrest ‘a sad reminder of Hitler’s Gestapo strategies’ — Ozekhome Kano Govt. owes retirees N13bn gratuities Saraki announces Special Panel to strengthen security in National Assembly

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (339,876 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (334,916 views) Shameless Genevieve Nnaji exposes breasts in public (267,968 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (220,360 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (202,198 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (198,270 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (172,968 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (155,334 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (147,202 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (139,139 views) Lagos plane crash: Journalist releases victims’ names (136,991 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (129,661 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (36) Business & Economy (3,074) Business Verdict (40) Columnists (837) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (484) Features (569) Global Business Monitor (264) International (1,928) Interview (149) Live Commentary (28) Love Matters (116) News (34,741) Opinion (917) Pidgin (10) Politics (4,813) Religion (724) Sports (1,485) Stock Watch (28) AMA & Al Jazeera Global Update

 

Firstmobile banner

 

 

NEWS EXPRESS TV

Boko Haram commanders surrender

 

APO Group Partner

 

 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement