Shares of MTN Group gained more than 2% on Monday (25 November) on hopes a landmark deal on Iran’s nuclear program may unlock millions of dollars the South African mobile operator has locked up in its largest Middle East market.<\/p>\n
Six world powers, including the United States, reached the deal with Iran\u00a0on Sunday to curb Tehran’s nuclear program in exchange for limited sanction relief.<\/p>\n
MTN, Africa’s largest mobile operator, has been unable to repatriate around $450 million from its Iranian unit because of sanctions.<\/p>\n
Johannesburg-based MTN said in a statement it was still too early to tell the impact from the agreement, adding it was monitoring developments.<\/p>\n
But investors were betting the deal was likely good news. Its stock added 1.9% to R197.34 shortly after 15.30pm.<\/p>\n
“The agreement over the weekend had a positive impact on sentiment towards the stock, but I think one would need clarity on how that would affect MTN’s operations,” said Andrew Bryson, a trader at Nedbank Private Wealth in Johannesburg.<\/p>\n
MTN operates in 22 countries in Africa and the Middle East and owns 49% of MTN Irancell, which contributed nearly a quarter of its 2012 revenue.<\/p>\n
It cut its full-year target for new subscribers by nearly 10%, as the sanctions against Iran dampened consumer demand.<\/p>\n
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