MTN is trying to find a solution that will allow it to get money out of Iran, which is currently the subject of sanctions by the US.
CEO Sifiso Dabwenga says the company is in talks with several US authorities, including that country's treasury, over how to repatriate money out of Iran.
Addressing a media roundtable after presenting the group's interim results, Dabwenga said that MTN wants to repatriate about $400 million in loans and between $150 million and $200 million in dividends.
Dabwenga explains, however, that any transaction involving moving money must be done between central banks. It is working through a mechanism that he hopes will fit in with this principle and be approved.
MTN has not been able to pull any money out of the country since early last year, says Dabwenga. He says discussions are quite advanced and he hopes there will be a resolution by year-end.
According to Reuters, the US ramped up tough measures against Iran in recent years to slow development of the Islamic Republic's disputed nuclear programme, blacklisting a wide range of Iranian companies and government officials. The country believes Iran is enriching uranium to levels that could be used in nuclear weapons, although Tehran has said its programme is for peaceful purposes.
In May, the US relaxed sanctions to allow American companies to sell mobile phones, software and other technology used for personal communications to Iranians, the wire service reported.
Iran is MTN's second largest operation, with 42 million subscribers. It entered the country in 2006 and has a 49% stake in the unit.
During the first half of the year, the subscriber base gained 3.8% and penetration in the country is now more than 100%. Dabengwa says the entity invested R445 million in the first half of the year and, although there have been project delays, these have not been significant.
The unit added 280 2G sites and rolled out 37km of fibre in the half-year and saw overall revenue gain 19% in local currency. Data revenue gained 51.7% year-on-year.
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