Abu Dhabi's Etisalat Group raises West Africa focussed Maroc Telecom Group stake to 53% for $505m
$505m deal will have an immediate benefit on group results, says Etisalat
Dubai: The Etisalat Group now has full ownership in Etisalat Investment North Africa, having bought the 8.7 per cent it was not holding from Abu Dhabi Fund for Development.
The acquisition cost of $505 million is subject to change based on prevailing market conditions such as foreign exchange rate prior to the transaction completion. The acquisition will be funded by bank borrowings.
Etisalat Investment North Africa holds exposures in Société de Participation dans les Télécommunications (SPT), which in turn has an investment in Maroc Telecom Group. The latest deal with Abu Dhabi Fund for Development will ultimately increase Etisalat Group’s effective ownership in Maroc from 48.4 per cent to 53. Maroc has operations in 11 countries including Morocco and West Africa offering mobile and fixed voice and broadband, mobile money and other telecom services.
This will "positively impact" the Abu Dhabi headquartered Etisalat's consolidated net profits, due to lower minority interest of group consolidated results and potentially increase future dividends from Maroc.