In an unexpected move, mobile operator Ooredoo has withdrawn from the race to acquire a majority stake in Maroc Telecom.
The Qatari company, which was competing against UAE’s Etisalat for Vivendi’s 53% interest in the Moroccan carrier, threw in the…
In an unexpected move, mobile operator Ooredoo has withdrawn from the race to acquire a majority stake in Maroc Telecom.
The Qatari company, which was competing against UAE’s Etisalat for Vivendi’s 53% interest in the Moroccan carrier, threw in the towel because of “a lengthy process,” according to Ooredoo.
Because of that process “it is no longer in the best interests of our shareholders to continue to commit capital,” Ooredoo CEO Nasser Marafih commented. The decision was made “although Maroc Telecom represents a good fit for our global portfolio”.
The Qatar-based operator had launched an offer in December 2012 before submitting a fully financed bid on 24 April, “which met all the requirements of the process”, stressed the company.
Reports, citing people close to the matter, suggest that following Ooredoo’s withdrawal from the race, negotiations between Etisalat and Vivendi are now moving forward and that a deal could be completed by October.
Vivendi declined to comment further on the matter while Etisalat was not immediately available for comment.
The stake sale is part of Vivendi’s comprehensive strategic review of its telecoms units last year, as it seeks to focus primarily on its media operations.
The French conglomerate is expected to raise around €5.5bn (US$7.4bn) from the sale of its shares in Maroc Telecom, which is also 30%-owned by the Moroccan government.
In late May, Etisalat shareholders approved the board’s recommendation to raise external funding for its bid. The company did not disclose the size of the financing but it has been rumoured that Etisalat might raise as much as US$8bn to buy the 53% stake.
Although Ooredoo raised a US$12bn loan, a Reuters reported suggested a few weeks ago that Etisalat had made the highest offer.
Ooredoo said in its statement that it now plans to focus on generating value “in other opportunities across our global footprint through organic and acquisitive strategies.”
