UAE operator Etisalat is reportedly interested in taking part in the privatisation of struggling Beninese incumbent Libercom.
Etisalat is however unlikely to make an offer for the telco before it completes its acquisition of a majority stake in Maroc…
UAE operator Etisalat is reportedly interested in taking part in the privatisation of struggling Beninese incumbent Libercom.
Etisalat is however unlikely to make an offer for the telco before it completes its acquisition of a majority stake in Maroc Telecom, scheduled to take place by May this year, according to Agence Ecofin citing a source close to the situation.
A purchase of Libercom would be in line with recent comments made by Etisalat head of M&A Tim Knowles on the sidelines of the 2014 TelecomFinance conference. Although he dismissed suggestions that the UAE giant was in acquisition mode, Knowles said that some of its operations could be strengthened via in-market consolidation.
Buying most of Libercom would be in line with that strategy as Etisalat is already present in Benin with the Moov brand.
In late February, Benin’s government revived plans to sell an 80% stake in the state-owned operator and said it was looking for an investor or private international telecoms operator, potentially in a consortium, to privatise the telco.
In late 2010, six companies had been shortlisted to buy Libercom’s parent Benin Telecom.
The operators were Orange, Maroc Telecom, Libya’s Lap GreenN, Sudatel’s Expresso Telecom, Tunisie Telecom and Detecon. Final bids were expected in November that year but no deal eventuated, reportedly because of political hurdles.
Benin has a highly competitive mobile market with a population of 10.3 million, in which five operators battle for market share. Of these, Libercom has the fewest subscribers, while South Africa’s MTN and Etisalat dominate the market.
