MTN Group says it remains committed to negotiating a USD 65 million sale of its 75 percent stake in its Syrian unit, despite the business being placed under judicial guardianship on 25 February, Reuters reported. MTN Syria was placed under guardianship by a court in Damascus over alleged MTN violations of the terms of its licensing contract, which the state says deprived the government of revenue. MTN has denied the allegations and on 26 February said that it intended to appeal.
The appointed guardian, who is chairman of MTN Syria minority shareholder TeleInvest, will be responsible for managing day-to-day operations while the guardianship order remains in place. The court's statement did not indicate how long that might be. TeleInvest had been lined up to buy MTN Group's 75 percent stake in MTN Syria for a previously undisclosed price.
The sale to TeleInvest is part of MTN Group's plans to exit the Middle East in the medium term. The group's operations in the Middle East have been marred by allegations that it used bribes to win a fifteen-year operating licence in Iran and that it aided militant groups in Afghanistan. MTN denies the allegations.
