Africa’s biggest telecom says U.S decision on Iran may limit its ability to repatriate cash from Irancell

0
570
FILE PHOTO: U.S. President Donald Trump delivers his speech at the National Assembly hall in Seoul, South Korea, Wednesday, Nov. 8, 2017. REUTERS/Lee Jin-man/Pool/File Photo

MTN Group said on Wednesday that U.S. President Donald Trump’s decision to pull out of the Iran nuclear accord may limit the South African telecoms firm’s ability to repatriate cash from MTN Irancell, sending its shares lower.

A shopper walks past an MTN shop at a mall in Johannesburg, South Africa, March 2, 2017. REUTERS/Siphiwe Sibeko
Trump said on Tuesday he would reimpose U.S. economic sanctions on Iran, which were lifted under the agreement he had harshly criticized.

In 2018, the company had repatriated about 88 million euros ($104.26 million) from MTN Irancell, including 61 million euros relating to the 2017 dividend due to MTN as well as a further 27 million euros of historic dividends.

The remaining balance due to MTN is about 200 million euros, MTN said, adding it was committed to its investment in Irancell and to repatriating the balance of legacy cash.

The company said it will continue to monitor the situation, including the response of the Iranian authorities and the othermembers of the Joint Comprehensive Plan of Action.

MTN’s shares were down 2.6 percent at 0745 GMT after earlier falling over 3 percent.($1 = 0.8440 euros)

SHARE
Previous articleWill Currency Swap deal stifle Nigerian economy?
Next articleEmirates Group Announces 2017-18 results
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.