MTN gains on lifting of Iran sanctions

Shares in MTN Group rose on Monday on news that sanctions against Iran have been lifted, a move that would free up more than $1 billion in frozen accumulated dividends for the South African mobile phone company.

The stock was up 2.22% at R120.88, early Monday, outpacing a 0.2% rise in its closest rival Vodacom Group .

Iran emerged from years of economic isolation on Saturday when world powers lifted crippling sanctions against the Islamic Republic.

MTN, which owns 49% of unlisted Irancell, the Middle Eastern country’s second-biggest mobile phone operator by subscribers, has been restricted from repatriating money from the unit due to the sanctions.

MTN said in August last year it hoped to repatriate about $1.1 billion in accumulated dividends frozen by international sanctions once Iran’s nuclear deal with world powers was finalised.