The Moroccan government plans to sell a portion of its 30% stake in incumbent Maroc Telecom to replenish the state’s coffers following public spending released to appease social unrest, Reuters reports.
The ministry of economy and finance reportedly…
The Moroccan government plans to sell a portion of its 30% stake in incumbent Maroc Telecom to replenish the state’s coffers following public spending released to appease social unrest, Reuters reports.
The ministry of economy and finance reportedly said it would sell up to 7% of the telco, representing 61.53 million shares, on the Casablanca stock exchange. Bids to select a financial adviser are expected to open on 7 September.
The report said market sources in Casablanca anticipated a transaction before the end of the year.
A local fund manager was quoted saying that the market would expect the government to offer a discount on the share price, which stood at Dr144 (US$18) at the closing of 15 July, because the operator’s growth prospects are modest.
Maroc Telecom is owned by French telecom Vivendi which holds a 53% stake. The government currently controls 30%, while the remaining 17% stake is listed.
It has subsidiaries in Mauritania, Burkina Faso, Gabon Telecom and Mali.
Following social unrest, the government increased wages and pensions for public sector staff, the army and paramilitary forces as well as raising subsidies for food and energy goods.
