Qatar’s Ooredoo, formerly known as Qtel, is reportedly in talks with banks about a syndicated loan to finance its bid for Vivendi’s stake in Maroc Telecom.
The telco, which is being advised by JP Morgan, is speaking to nine or ten banks to secure…
Qatar’s Ooredoo, formerly known as Qtel, is reportedly in talks with banks about a syndicated loan to finance its bid for Vivendi’s stake in Maroc Telecom.
The telco, which is being advised by JP Morgan, is speaking to nine or ten banks to secure the loan, said bankers cited by Reuters.
French media and telecoms conglomerate Vivendi is expected to raise around €5.5bn (US$7.4bn) from the sale of its 53% controlling stake in the Moroccan telco, with UAE telco Etisalat and South Korea’s KT Corp having also expressed an interest in the asset.
Ooredoo and Etisalat would most likely finance a bid for the entire company from cash on the balance sheet, shareholder loans or a right issue, rather than increase the size of their debt financing, said the bankers.
Binding bids are due on 22 April, said one banker in the report.
Local law may force bids for entire company
Bidders such as Ooredoo who are interested in buying Vivendi’s stake in the Moroccan operator may now have to finance a bid for the whole company, according to the bankers.
While the Moroccan government wants to keep a 30% stake in Maroc Telecom, law in the Maghreb country could force interested entities to bid for the entire company, they said.
However, they are exploring ways to avoid this situation, such as putting the government’s equity investment into an SPV.
