UAE-based Etisalat will submit today a binding offer for Vivendi’s 53% stake in Maroc Telecom.
The company said that, as per market regulations in Morocco, it will also be required to make a mandatory offer to minority shareholders and could therefore…
UAE-based Etisalat will submit today a binding offer for Vivendi’s 53% stake in Maroc Telecom.
The company said that, as per market regulations in Morocco, it will also be required to make a mandatory offer to minority shareholders and could therefore end up acquiring more than a 53% interest.
No financial details were disclosed but Etisalat said it has already secured the required funds from both local and international banks. Recent reports said that the telco was in talks with up to 16 banks to secure an US$8bn loan.
Meanwhile Ooredoo (Qtel), the other bidder left in race, has reportedly lined up a US$12bn loan ahead of its bid for Vivendi’s majority stake in Maroc Telecom.
Ten banks will reportedly provide the loan: Bank of Tokyo Mitsubishi, Barclays, Citi, Development Bank of Singapore, Deutsche Bank, HSBC, JP Morgan, Morgan Stanley, Qatar National Bank and Royal Bank of Scotland.
Vivendi is expected to raise around €5.5bn (US$7.4bn) from the sale of its stake in the Moroccan telco, which would help cut its debt.
Etisalat is being advised by BNP Paribas, and Ooredoo has hired JP Morgan.
Until recently South Korea’s KT Corp was also among the prospective buyers. But the company withdrew from the process because of a ‘big difference’ between the sell-side and KT Corp with regards to the valuation of the asset, a person close to the matter told TelecomFinance.
However, the company will still consider investment opportunities in Maroc Telecom in the future, the source added.
