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US SANCTIONS

Iran: US sanctions complicates MTN’s effort to repatriate 2018 profit

Africa’s biggest mobile operator, MTN Group, yesterday said it was going ahead with its 2018 target of repatriating dividend from its joint venture with Irancell despite likely complications that may arise from new US sanctions on the country.

READ ALSO: MTN says U.S. withdrawal may limit its cash repatriation from Iran

Chief Executive, Rob Shuter, said on a conference call in Johannesburg that the company stands by its plan to increase payouts by 10 to 20 per cent over the next three to five years to its investors.

“Despite continued challenges in repatriating funds from MTN Irancell, the board remains committed to plans to declare a total dividend of 500 cents per share for 2018,” Mr Shuter said. MTN, which reported a 7 per cent drop in half-year profits on Wednesday, has around 3.4 billion rand ($256 million) in accumulated dividends and loans from its joint venture in Iran.

Sanctions imposed on Tehran by the United States this week have already led banks and many companies around the world to scale back dealings with the Middle East nation, which signed a nuclear deal with the Barrack Obama administration in 2015.

But President Donald Trump warned on Tuesday that companies doing business with Iran would be barred from the United States.

The telecoms boss, however, said the sanctions may limit the ability of the group to repatriate cash from MTN Irancell, including future dividends.

The company declared a dividend of 175 cents per share in the first six months of the year, meaning it would have to pay 325 cents to reach in second-half of the year to hit the target.

MTN said headline EPS, the primary measure of profit in South Africa that excludes certain one-off items, fell 7 per cent to 215 cents in the six months through June due to unfavourable currency swings as well as a lower contribution from joint ventures and associates.

Those contributions dropped by 66 per cent to 197 million rand, mainly due to a drop in the contribution from MTN Irancell and a widening loss at its e-commerce joint venture, Africa Internet Holdings.

In addition to its 49 per cent stake in Irancell, MTN said in May, 2017 it had agreed to invest more than $295 million in Iranian Net, a fixed line broadband network in which it planned to buy an initial 49 per cent stake.

In Nigeria,MTN said its local unit would list on the Nigerian Stock Exchange before the end of 2018, although stakeholders are beginning to query its commitment to the project.

The telecoms firm planned to raise at least $400 million to cut debt for MTN Nigeria, then valued at $5.23 billion.

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Tokunbo David
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5 Comments

  1. Ezekiel Okeke 9th August 2018 at 7:58 am

    If America disrupt business of Southern Countries Union- SCU member states which comprises Asia, Africa, South America and parts of Europe, and business of countries of EU, America must pay the damages to the full in this 21st century world international order. This is 21st century world international order. 20th century world international order is dead and gone forever. Anglo-America has fallen and gone forever with their fraudulent criminal UN of 20th century world international order etc. God Is With Us!!!

  2. Ezekiel Okeke 10th August 2018 at 10:15 pm

    America is enemy of Southern Countries Union- SCU which comprises Asia, Africa, South America and parts of Europe led by Russia, Turkey representing Europe, China, India, Japan, Indonesia representing Asia, Brazil, Mexico representing South America, Egypt, South Africa representing Africa, which is more than 80% of international market of 21st century world international order. Southern Countries Union- SCU member states economy or market shouldn’t rely on US market which is not up to 0.5% international market of 21st century world international order. Southern Countries Union- SCU member states trade or market shouldn’t rely on US currency dollar. Southern Countries Union- SCU member states shouldn’t allow any instrument the enemy can use against Southern Countries Union- SCU member states. Anglo-America has fallen and gone forever with their fraudulent criminal UN of 20th century world international order and 20th century world international market order, trade etc. Southern Countries Union- SCU member states economy, market, trade etc. should rely on Southern Countries Union- SCU instruments- Southern Secondary Currency- SSC which serves as major trading instrument etc., with its international instruments for finance, trade etc., Southern Union Bank- SUB, Southern Monetary Fund- SMF etc. It is war Southern Countries Union- SCU has won against the fallen Anglo-America with their fraudulent criminal UN of 20th century world international order, 20th century world international market order etc. which must be defended now with Southern Countries Union- SCU instruments. This is 21st century world international order. 20th century world international order is dead and gone forever. God Is With Us!!!

  3. Ezekiel Okeke 11th August 2018 at 8:48 pm

    The era America uses instruments of the dead 20th century world international order to fight Southern Countries Union- SCU member states which comprises Asia, Africa, South America and parts of Europe, is over and gone forever. Dollar is currency of the enemy of Southern Countries Union- SCU. Southern Countries Union- SCU member states which is more than 80% of international market of 21st century world international order, must destroy now the instruments of 20th century world international order America is using to fight Southern Countries Union- SCU member states by establishing Southern Countries Union- SCU instruments which are Southern Union Bank- SUB, Southern Monetary Fund- SMF, Southern Secondary Currency- SSC which serves as major trading instrument etc., with its international instruments for finance, trade etc., Southern Countries Union- SCU financial and trade system etc. This is 21st century world international order. 20th century world international order is dead and gone forever. Anglo-America has fallen and gone forever with their fraudulent criminal UN of 20th century world international order etc. God Is With Us!!!

  4. Ezekiel Okeke 12th August 2018 at 8:30 am

    Instruments of the dead 20th century world international order America is using as weapons of war against Southern Countries Union- SCU member states which comprises Asia, Africa, South America and parts of Europe, and against countries of EU etc., must be destroyed now and establish now instruments of 21st century world international order based on 21st century world international order backgrounds which has Southern Countries Union- SCU, Union of EU etc. Instruments of the dead 20th century world international order America is using as weapons of war against Southern Countries Union- SCU member states, countries of EU etc. are- Dollar as major trading instrument, 20th century world international market system, financial system etc. Southern Countries Union- SCU which is more than 80% international market of 21st century world international order must establish now instruments of Southern Countries Union- SCU which are- Southern Secondary Currency- SSC which serves as major trading instrument etc., Southern Union Bank- SUB, Southern Monetary Fund- SMF, market system, financial system etc. of Southern Countries Union- SCU, and relations with Union of EU which has Euro as major trading instrument, which has market and financial system etc. This is 21st century world international order. 20th century world international order is dead and gone forever. Anglo-America has fallen and gone forever with their fraudulent criminal UN of 20th century world international order etc. God Is With Us!!!

  5. Ezekiel Okeke 13th August 2018 at 9:05 am

    Dollar as major trading instrument which America uses as weapons of war against Southern Countries Union- SCU member states which comprises Asia, Africa, South America and parts of Europe which is more than 80% international market of 21st century world international order, and against countries of EU etc., is history in this 21st century world international order. International market system, trade system, financial system etc. of the dead 20th century world international order America uses as weapons of war against Southern Countries Union- SCU member states, and against countries of EU etc. is history in this 21st century world international order. This is 21st century world international order. 20th century world international order is dead and gone forever. Anglo-America has fallen and gone forever with their fraudulent criminal UN of 20th century world international order. God Is With Us!!!

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