MTN Group has announced plans to expand in Iran, signing a non-binding preliminary agreement to invest approximately R540 million into Iranian Fixed Broadband Provider, Iranian Net.
In a statement issued by the telecommunications company, the investment will acquire a 49% stake in Iranian Net. As a part of the agreement, MTN will provide further investments of approximately R3.4 billion in both equity and loans to facilitate Iranian Net meeting its rollout targets over the next five years.
The preliminary agreement remains subject to finalizing suitable transaction agreements.
Iranian Net has a national license for the construction and operation of an optical data transmission network and fibre optic access network across Iran.
MTN Group says that this investment will facilitate growth in the Iranian broadband market. “This investment, should it be completed, represents an opportunity to capitalize on the continued strong growth expected in the Iranian broadband market, with an initial focus on eight of the main cities,” stated MTN.
In its quarterly update for the period ended 31 March 2017, MTN listed Iran as part of several key markets in which it has made significant investments.
MTN Irancell increased its total revenue by 19,3% leveraging what the operator describes as “encouraging data revenue trends.”