South African mobile operator MTN's funding of its operations in Iran will reach $1.5 billion in two to three years, Chief Executive Officer Phuthuma Nhleko said on November 24.
MTN said on November 21 it had reached a deal to take a 49 percent stake worth some $2 billion in the Irancell consortium running Iran's second private mobile network.
The Iran deal is seen as a litmus test for MTN, Africa's biggest cellphone group by revenue, which has been searching Africa and the Middle East to expand its customer base beyond its South African and Nigerian markets which are maturing fast.
Nhleko also said during a presentation on the group's interim results that MTN was not for sale, even though a foreign buyer might make an approach.
"It is not unfeasible that a foreign buyer could approach MTN that is something the shareholders would have to consider but we don't have a 'for sale sign' outside the door," Nhleko said.
By 0921 GMT, MTN shares were 5.6 percent lower at 56.60 rand while the JSE Securities Exchange's blue chip Top-40 index stood 0.7 percent firmer.
Nhleko said MTN expected its South African subscribers to reach 10 million by the end of December 2005 and its Nigerian subscribers to reach 8.5 million.
He said the group expected a slight decline in its earnings before interest, depreciation and amortisation (EBITDA) margin at the end of December compared with a year ago.