Etisalat picks banks for $6bn Maroc buy - sources

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Etisalat, the United Arab Emirates' biggest telecommunications operator, has hired banks to advise on its planned acquisition of Vivendi's 53 percent stake in Maroc Telecom, banking sources aware of the matter said.

The state-controlled firm picked BNP Paribas and Morocco's Attijariwafa Bank as financial advisers, the sources said, speaking on condition of anonymity as the matter has not been made public.

A spokesman for Etisalat declined to comment.

Vivendi, the French media, entertainment and telecoms conglomerate, is looking to sell several assets as part of an overhaul aimed at cutting debt and reducing its exposure to the capital-intensive telecoms business.

Its majority stake in Maroc Telecom is worth about US$6bn on current market value, and a potential buyer for the stake would also be expected to make a mandatory offer to minority shareholders, further boosting the takeover price.

Etisalat is talking to banks about a syndicated loan of up to US$8bn to finance the potential transaction, banking sources told Reuters Loan and Pricing Corp earlier in February.

Other bidders for the stake include Gulf operator Qatar Telecom (Qtel) and South Korean telecoms company KT Corp.

Qtel has hired JP Morgan Chase Inc as adviser, while KT Corp picked Citigroup Inc, Credit Suisse and Societe Generale to advise and finance a potential transaction, according to sources familiar with the matter.

Maroc Telecom has majority stakes in Gabon Telecom, Mauritania's MaurieTel, Burkina Faso's Onatel and Mali's Sotelma.

It posted a 17 percent drop in 2012 net profit, citing restructuring charges and a non-recurring contribution to the government. Morocco is expected to retain its 30 percent holding in Maroc Telecom. 

Related:

Market Performance

Emirates Telecommunications Corporation
11.45
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
An Instagram photo is worth a thousand words

An Instagram photo is worth a thousand words

Instagram has become the social media platform of choice for...

1
Fear and roaming in the Gulf

Fear and roaming in the Gulf

The Gulf’s telecommunications giants are once more pushing ahead...

The art of the online video

The art of the online video

As online marketing continues to grow in prominence and importance...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams