MTN to pay R540m for stake in Iranian Net, plans to invest R3.4bn

Johannesburg - MTN Group is set to purchase a 49% stake in Iranian-owned fixed broadband provider Iranian Net for R540m, with further investments likely to reach R3.4bn.

In a statement on Monday, MTN said that the company had signed a non-binding preliminary agreement to invest approximately R540m into Iranian Net with further investments in both equity and loans to facilitate Iranian Net meeting its roll-out targets over the next five years.

“The preliminary agreement remains subject to finalising suitable transaction agreements,” the company said. 

READ: MTN close to Iran pact

Iranian Net has a national licence for the construction and operation of an optical data transmission network and fibre optic access network across Iran. 

“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,” MTN said. 

MTN already owns a 49% stake in Tehran’s Irancell Telecommunication Services, and has been repatriating some of the $1bn that had been trapped in Iran before restrictions were removed.