The Ministry of Communications and Information Technology announced on Wednesday that Syria has launched an international tender for a new mobile operator license to replace MTN Syria.
The new license paves the way for South Africa’s MTN Group to formally exit Syria after abandoning its operations in 2021. MTN owns 75% of MTN Syria.
The Ministry has officially launched a competitive bidding process that will run until June 15 at the Mobile World Congress in Barcelona.
According to the ministry, the winning operator will receive a 75% stake in the local business under a 20-year license, with the remaining 25% held by the Syrian Government Fund.
MTN said in a separate statement that group CEO Ralph Mupita spoke with Syria’s Minister of Communications and Information Technology Abdulsalam Haykal on the sidelines of the meeting, where both sides agreed on the company’s exit and indicated plans to implement it “immediately”.
Neither party has said whether MTN will pay for its 75% stake.
In 2020, MTN announced that it would sell a 75% stake in MTN Syria to minority shareholder TeleInvest for $65 million. However, a deal fell through and the operating company abandoned the project in 2021, citing regulatory measures and requirements that made it “unsustainable.”
A Damascus court has placed MTN Syria under conservatorship for allegedly violating licensing obligations by depriving the country of revenue. MTN denied these accusations.
The company recorded a loss of R4.7 billion ($287 million) due to the “deconsolidation” of its subsidiary.
Africa’s largest mobile phone company by subscribers has largely exited the Middle East as part of its strategy to focus on its African operations. The company is looking to sell its operations in Yemen and Afghanistan and sell its 49% stake in Iran, but this has been delayed by US sanctions.
($1 = 16.3521 rand)
(Reporting by Nqobile Dludla; Editing by Elaine Hardcastle)
