Dubai: Etisalat on Tuesday said that it has entered into exclusive talks to purchase Vivendi’s 53 per cent stake in Maroc Telecom for €4.2 billion (Dh20.3 billion).
The offer values Vivendi’s stake at €3.9 billion, or 92.6 dirhams per Maroc Telecom share, etisalat said in a statement on Abu Dhabi stock exchange. Etisalat would also pay €310 million for a dividend that Vivendi was set to receive from Maroc Telecom.
The French conglomerate has given the UAE telecom operator a period of exclusivity until September 25, 2013, etisalat said in a statement.
Vivendi’s response to etisalat’s binding offer will follow consultation with its Works Councils. If Vivendi accepts the offer, the transaction remains subject to a number of conditions including, among others, the execution of a shareholders’ agreement with the Kingdom of Morocco and securing competition and regulatory approvals in the Kingdom of Morocco and certain other jurisdictions in Maroc Telecom’s footprint.
The Maroc transaction ranks as one of the largest emerging market deals this year and it would give etisalat control over the largest mobile carrier in Morocco.
“Since Ooredoo opted out of the bid for Maroc telecom, Etisalat’s was considered as an obvious winner.
“However, negotiations with Vivendi are still underway and it may take a couple of months before we hear a public announcement in this regard,” Hassan Sandila, senior telecom analyst at IDC, told Gulf News.
Moroccan capital markets regulations will require Etisalat to make a mandatory tender offer to the remaining shareholders in Maroc Telecom, which may result in Etisalat further increasing its shareholding. The outstanding free float represents approximately 17 per cent of total number of shares.
“Etisalat is planning to finance the transaction through external borrowings and has already secured a commitment to provide the requisite funds from a syndicate of local and international banks,” the statement said.
