MTN Group has reportedly begun the process of acquiring Nigeria’s Visafone Communications, according to reports from Bloomberg Business citing unnamed sources familiar with the deal.
Founded in 2007, Lagos-based Visafone is a wireless network provider.
South Africa-based MTN, Africa’s largest mobile phone company, has been seeking acquisitions in an effort to increase revenue from data outside South Africa, where Vodacom Group has more subscribers. At the end of 2014, MTN had 59.9 million subscribers in Nigeria, more than a quarter of its 223 million total across 22 countries. Visafone had about 2.2 million customers as of December 2014, according to data compiled by the Nigerian Communications Commission.
Meanwhile, MTN Group is welcoming the easing of sanctions against Iran.
The lifting of sanctions would allow MTN to transfer about $1 billion in accumulated dividends and a loan repayment from its Iranian unit, Reuters reported this week.
MTN owns 49% of unlisted Irancell, the No. 2 mobile phone operator in Iran by subscribers. MTN has been unable to repatriate money from Iran due to the Western-imposed sanctions.
Iran and global powers reached a framework agreement last week on curbing Iran’s nuclear program for at least a decade in exchange for lifting sanctions against the country.
MTN Group on March 20 announced plans to invest $123 million in upgrading and expanding its mobile data network in Ghana.
Subsidiary MTN Ghana CEO Serame Taukobong told the press and investors at an event in Accra that the company’s capital expenditures will cover development of new products and services as well as continued expansion of current services, according to Biztech Africa.
Ghana, a state of about 27 million people, has had a stable democratic government since 2000, and a nominal GDP of $70 billion.
MTN Group currently provides a financial transaction service, similar to the popular Kenya M-Pesa system, via its MTN Mobile Money Wallet, which allows users to make regular financial transactions via their mobile devices.
