Shareholders of UAE-based Etisalat have approved the board’s recommendation to raise external financing for its potential acquisition of a majority stake in Maroc Telecom.
The company did not disclose the size of the financing. However, earlier…
Shareholders of UAE-based Etisalat have approved the board’s recommendation to raise external financing for its potential acquisition of a majority stake in Maroc Telecom.
The company did not disclose the size of the financing. However, earlier reports suggested that it might require as much as US$8bn to buy French media conglomerate Vivendi’s 53% stake in the Moroccan operator.
Rival bidder Ooredoo (Qatar Telecom) recently also raised a US$12bn loan.
Last week, Ooredoo CEO Nasser Marafih reportedly said that part of the financing could also be used for consolidation moves in countries where it is already present. The company has recently increased its stakes in several Middle Eastern subsidiaries, including in operations in Kuwait and Iraq.
Vivendi is expected to raise around €5.5bn (US$7.4bn) from the sale of its stake in Maroc Telecom, which is also 30%-owned by the Moroccan government.
The conglomerate has yet to announce the winner, but a recent Reuters report suggested that Etisalat has made the highest offer.
However, Ooredoo could still end up winning the deal as its offer requires less work and has fewer legal conditions attached to it than Etisalat’s, according to a Reuters source.
