South Africa's telecom giant 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.

By 0858 GMT, the stock was up 2.22 percent at 120.88 rand, outpacing a 0.2 percent rise in its closest rival Vodacom Group.

MTN, which owns 49 percent 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.

MTN spokesman Chris Maroleng declined to comment.