MTN Group announced today that the company has signed a non-binding preliminary agreement to invest approximately R540 million into Iranian Fixed Broadband Provider, Iranian Net.
The investment will see the South African telecommunications company 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 finalising suitable transaction agreements. 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.