55432
Iran, MTN’s third-largest market, could soon overtake Nigeria as No. 2, as the company’s growth in the Middle Eastern country accelerates.
Iran, MTN’s third-largest market, could soon overtake Nigeria as No. 2, as the company’s growth in the Middle Eastern country accelerates.

MTN Moves Loans, Dividends Out of Iran

MTN Moves Loans, Dividends Out of Iran

MTN Group Ltd., the South African wireless carrier that has been trying to repatriate $1 billion from Iran, has managed to extract several hundred million dollars from the country with the help of European banks, according to people familiar with the matter.
With a number of money transfers now completed, MTN expects to bring the entire sum home by the end of the first quarter, the people added, asking not to be named because the information is not public.
The stranded cash includes a $430 million loan repayment from the 49% owned venture MTN Irancell Telecommunications Services Company, as well as dividends accumulated in Iran over five years, Bloomberg reported.
The cash buys MTN added flexibility as it revamps its top management and marks a step toward normalization of its business in Iran, where US-led sanctions had prevented the company from reaping the fruits of a thriving venture.
While Iran is one of MTN’s most important markets, frictions with the US could resurface at any time, a concern exacerbated by the possibility of policy changes under US president-elect, Donald Trump.
Trump’s election “puts an unknown into the mix”, said Peter Takaendesa, a portfolio manager at Mergence Investment Managers in Cape Town. Takaendesa said. “It would be good for shareholders if MTN could get the money out sooner rather than later.”
The shares rose as much as 1% and were up 0.7% at 123.7 rand at 10:42 a.m. in Johannesburg.
MTN is confident that it will be able to continue repatriating dividends from Iran in the future, even if the change in US administration, scheduled for January 20, affects the political climate, one of the people said.
An MTN representative declined to comment on the repatriation of funds from Iran.
The company has been trying to take the money out of Iran since April, after US-led international sanctions were lifted earlier in the year. But a lack of ties between Iran and international banks slowed the process.
The transfers started flowing in October, after unnamed banks began assisting the carrier in moving the funds, the people said.
Iran, MTN’s third-largest market, could soon overtake Nigeria as No. 2, as the company’s growth in the Middle Eastern country accelerates and the Nigerian currency slumps, said one of the people.
Iran now contributes about 10% of earnings, according to its latest financial report.
The Iran money also helps MTN’s cash position after it agreed to pay a 330 billion naira ($1 billion) fine to the Nigerian government this year for missing a deadline to disconnect customers.
As part of its push in Iran, MTN in October agreed to invest €20 million ($22 million) that will go toward the country’s first cab-hailing smartphone application, Snapp.ir.
“E-commerce is projected to grow to $20 billion by 2018 in the Middle East and MTN plans to particularly invest in the retail and travel sectors,” MTN Chairman Phuthuma Nhleko said in the company’s annual report.
Sanctions against Iran were lifted in January after inspectors certified that the country curtailed its nuclear program as promised under a 2015 agreement with world powers. MTN gained its Iran license in 2005.

Short URL : https://goo.gl/j7DgpQ
  1. https://goo.gl/ItrtaA
  • https://goo.gl/6kQGlc
  • https://goo.gl/tptxIO
  • https://goo.gl/zAvDKb
  • https://goo.gl/FILUnQ

You can also read ...

Facebook, Google Hit by $8.8b in Lawsuits
On the first day of GDPR enforcement, Facebook and Google were...
The rial has lost more than 30% of its value during the three months to April against the dollar.
Majlis Research Center, the parliamentary think tank, has...
Iranian Startup Boosting Value Added Services
Iranian startup SMS.ir has unveiled a new customer relations...
There are 359,700 active heavy-duty vehicles in Iran’s cargo truck fleet, of which 125,000 (34%) are over 15 years old and almost 1,500 trucks are five decades old.
A number of truckers across the country have taken industrial...
Tipax and Q-Post agreed to share their resources for the establishment of a courier network between Iran and Qatar to help boost bilateral trade.
A private Iranian courier service firm, Tipax, signed a...
Tehran Housing Market Rebounds
Following a very weak performance during the first month of...
Iran's Foreign Trade Tops $14b (March-May 2018)
Iran’s non-oil foreign trade during the two months of the...
Ayandeh Named Iran’s Best Bank by Euromoney
The private Ayandeh Bank has continued its string of success...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus