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Cancellation of Biggest Privatization Deal Put on Hold

Cancellation of Biggest Privatization Deal Put on HoldCancellation of Biggest Privatization Deal Put on Hold

The Iranian Privatization Organization says it will cancel the revocation of the privatization deal of the Telecommunications Company of Iran provided Mobin Trust Consortium (the majority shareholder of the company) pays off all its debts by January 9.

IPO announced last month it was calling off the TCI deal, which is said to be the largest case of privatization in Iran, due to the buyer’s failure to honor its commitments, IRNA reported.

Fifty plus one percent share of TCI was sold to Mobin Trust Consortium in 2009 at 78 trillion rials ($1.95 billion at market exchange rates). Twenty percent of the purchase money were paid in cash and the rest were to be paid in 16 installments of 4.84 trillion rials ($120 million) every six months. The consortium failed to make the installments.

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