Johannesburg-listed mobile operator MTN Group said on Thursday that while aiming to cautiously expand across the developing markets, its plans to enter Iran remained suspended until after the general elections in that country.
“The licencing process in Iran is on hold but we are ready. MTN is however building brand presence in Iran and the Middle East. This [region] is becoming an arena for the company to grow … we are poised and are ready when opportunities especially liberalisation opportunities present themselves,” MTN corporate affairs executive Yvonne Muthien said on Thursday.
MTN — currently seeking to gain a 100% holding in Dutch-based Celtel International — said it was prepared to acquire a 49% stake in Iran’s new mobile operator.
Turkey’s Turkcell, which was originally awarded a 70% interest in the new group, is protesting a move by the Iranian government that will reduce its stake in the company — resulting in 51% being held by the state.
Turkcell, currently in a wrangle to have the original terms re-established, has made it public that it will not accept a revised 49% shareholding. If the licencing process does not start afresh, MTN will automatically be entitled to a 49% stake.
Last week, the mobile group opened an office in Tehran. According to Muthien, this was to enable the company to establish a base in the Middle East.
MTN executive director Santie Botha said the company, which spent R10-million on a new branding exercise, was busy behind the scenes consolidating — adding that it will announce a new deal in the near future.
Muthien noted that the operator’s expansion path involved mergers and acquisitions in addition to new licences, as a result of the markets opening up across the developing world as well as stakes in new mobile and fixed national operators.
“We have to examine all opportunities carefully and prioritise accordingly,” she continued.
“We’ll reveal our future expansion in East Africa once we’ve concluded a new deal.” – I-Net Bridge