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MTN 'won't ditch Iran'

Jun 22 2006 09:19

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Johannesburg - Africa's biggest cellphone operator, MTN, scotched market talk on Wednesday it was poised to ditch its plan to launch in Iran and said it was on track to start services in August.

"MTN is not pulling out of Iran," a spokesperson said. "Yes we are on track to launch in August."

An industry source said on Wednesday market speculation had swirled that the company might abandon its plans to launch Iran's second cellphone operator.

MTN last year defied the risk around Iran's nuclear standoff with the West and bought a 49% stake in Irancell, a company with the licence to run the country's second operator.

MTN also denied talk that Newshelf - a vehicle that groups the shareholdings of directors and staff and owns 14.8% of MTN - was selling some of its shares in the firm to Iranian investors.

MTN shares, which have suffered as investors worry about the risk associated with Iran and other new markets, closed 4.34% higher at R57.07, outperforming the Johannesburg Top-40 index of blue-chip stocks.

 
 
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