REPORT- MTN says US decision on Iran may limit its ability to repatriate cash from Irancell

FILE PHOTO: A shopper walks past an MTN shop at a mall in Johannesburg, South Africa, March 2, 2017. REUTERS/Siphiwe Sibeko/File Photo

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

Trump said on Tuesday he would reimpose US 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 other members of the Joint Comprehensive Plan of Action.

MTN’s shares were down 2.6 percent after earlier falling over 3 percent.

Article sourced from TimesLIVE- Business

Photo Credit- REUTERS/Siphiwe Sibeko/File Photo

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