South Korea’s KT Corp has dropped plans to bid for a 53% stake in Vivendi’s Maroc Telecom because of valuations differences, TelecomFinance has confirmed.
A person close to the matter said that there was a ‘big difference’ between the deal size…
South Korea’s KT Corp has dropped plans to bid for a 53% stake in Vivendi’s Maroc Telecom because of valuations differences, TelecomFinance has confirmed.
A person close to the matter said that there was a ‘big difference’ between the deal size expected by the sell-side and what KT Corp had in mind.
However, the company will still consider investment opportunities in Maroc Telecom in the future, the source added.
Now that KT Corp is out of the race, only two companies are left vying for Vivendi’s stake the Moroccan operator: UAE-based telco Etisalat and Ooredoo (formerly Qatar Telecom).
Reports suggested that Etisalat and Ooredoo have long been considered the two front-runners given their knowledge of the Moroccan market and available financial backing for their bids.
Etisalat reportedly agreed a US$8bn dual-tranche loan facility ahead of its offer last week, while Ooredoo was rumoured to be in talks with nine or 10 banks to secure a loan in mid-March.
Etisalat is being advised by BNP Paribas, and Oooredoo has hired JP Morgan for advice on a potential deal. Bids are due at the end of April.
Vivendi is expected to raise around €5.5bn (US$7.4bn) from the sale of its stake in the Moroccan telco.
The French media and telecoms conglomerate launched a strategic review of its operations last year and sales processes for two of its three telecoms units: GVT in Brazil and Maroc Telecom. But the sale of GVT was suspended last month after US satellite broadcaster DirecTV pulled out of the process.
