South Africa's MTN Agrees Deal on Irancell Stake
Thu Oct 20, 2005
JOHANNESBURG (Reuters) - South Africa's MTN has concluded agreements with Irancell shareholders to take a 49 percent stake in the Iranian company, and has provided a 300 million euro ($358.4 million) payment guarantee toward a GSM license, the mobile phone company said on Thursday.
MTN (MTNJ.J: Quote, Profile, Research) said the potential opportunity was in line with its aim to become the leading emerging market telecom service provider. It gave no further financial details.
"This potential opportunity is in line with MTN's vision of becoming the leading telecoms operator in emerging markets, with the Middle East being the natural extension of MTN's strong existing footprint in Africa," MTN said in a statement to the Johannesburg bourse.
The contract to act as foreign operator in the Irancell consortium for Iran's second mobile license was originally awarded to Turkish mobile phone firm Turkcell (TCELL.IS: Quote, Profile, Research) last year.
But Iran's telecommunications ministry and the domestic Irancell partners fell out with Turkcell over payment of a license fee and started talks with MTN.
Turkcell began court action on Oct. 16 in an attempt to regain its Irancell stake, with foreign investors viewing the outcome as a litmus test of investment risk in the Islamic republic.
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