MTN Group CEO Rob Shuter said on Thursday at the telecommunications operator’s annual general meeting of shareholders that it still expects to declare a full-year dividend for 2018 of R5/share despite impending severe US sanctions on Iran.
Iran is a key market for MTN, where it owns 49% of MTN Irancell.
According to Shuter, MTN maintains the intention to grow the group dividend at between 10% and 20%/year “over the medium term” beyond the 2018 financial year.
The US’s recent withdrawal from an international agreement dealing with Iran’s nuclear programme and its plan to impose tough new sanctions on the Middle Eastern country has “created some complexity” for MTN.
“We still have a few months before these new agreements kick in,” said Shuter. “We are making every effort to repatriate the funds.” Reiterating a previous communication to shareholders, he said the US decision could affect the group’s ability to repatriate cash and dividends from the country.
Despite the new US sanctions, MTN remains committed to its investment in Iran and has no intention of withdrawing from the market.
“We are on top of a difficult situation that will unfold in the months to come.”
By Daniëlle Kruger
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