South Africa’s MTN Group has agreed to invest more than $295 million in Iranian Net, a fixed line broadband network in which it is to buy an initial 49 percent stake.
The outline deal announced on 8 May 2017 extends MTN’s interests in the Iranian telecoms market.
MTN will also to repatriate $1 billion in accumulated dividends from its 49 percent stake in wireless network operator Irancell.
The latest agreement is still at a non-binding stage.
MTN confirmed that it will pay ZAR540 million ($40 million) to buy a 49 percent stake in Iranian Net and will invest an additional ZAR3.4 billion in both equity and loans to help the Iranian company develop a fibre network over the next five years.
“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.”