South Africa\u2019s MTN Group said its plans to exit its investment in Iran are being hindered by US sanctions on the Middle Eastern nation.\u00a0<\/p>\n\n\n\n
\u201cYou cannot take money in and you cannot take money out,\u201d making the group\u2019s investment in that country \u201ca frozen asset,\u201d Chief Executive Officer Ralph Mupita told reporters at a briefing in Johannesburg on Friday. <\/p>\n\n\n\n
\u201cOur strategy has been a full exit on the Middle East.\u201d<\/p>\n\n\n\n
The Johannesburg-based group holds a minority interest in Irancell, which is not under its operational control, while it sold its Afghanistan operations early last year. <\/p>\n\n\n\n
MTN is facing a US Department of Justice grand jury investigation into its conduct and that of its former unit in Afghanistan and Irancell.\u00a0<\/p>\n\n\n\n
MTN has not made provisions for the outcome of the probe because it does not involve financial claims, Mupita said.<\/p>\n\n\n\n
\u201cThere is no claim, so there is no provision or contingency,\u201d Mupita said. <\/p>\n\n\n\n
The company on 27 August said that it\u2019s \u201crespectfully defending cases brought against\u201d it by plaintiffs in the US and \u201cmaintains that the plaintiffs have sued the wrong defendants in the wrong courts.\u201d<\/p>\n\n\n\n
With operations in 16 countries cross Africa and the Middle East, its home market South Africa accounts for less than a third of the group\u2019s revenue. <\/p>\n\n\n\n
The South African market needs consolidation in infrastructure and telecoms operators because the profit pool is limited, Mupita said. <\/p>\n\n\n\n
A decision by the country\u2019s antitrust authorities to allow Vodacom Group Ltd. to buy Remgro Ltd.\u2019s fiber assets \u201cis a major inflection point,\u201d he said.<\/p>\n\n\n\n
Bloomberg reported on Thursday that MTN is considering reviving talks to acquire smaller South African rival Telkom SA, citing people familiar with the matter.<\/p>\n\n\n\n
Telkom has also been talking to advisers about its options if a new takeover bid is launched, said the people, who asked not to be identified because information is still private.<\/p>\n\n\n\n
The two companies could begin negotiations before the end of the year, though there\u2019s no guarantee that these talks would lead to a deal, they said. <\/p>\n\n\n\n
Representatives for MTN and Telkom declined to comment. <\/p>\n\n\n\n