Qatar telco said to be in loan talks for Maroc bid

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Qatar Telecom, now known as Ooredoo, is talking to banks about a syndicated loan to back a bid for Vivendi's Maroc Telecom stake as bidders face the prospect of having to finance a bid for the whole company, bankers have said.

Morocco's government wants to keep a 30 percent stake in Maroc Telecom, but a bid for Vivendi's 53 percent stake could trigger a mandatory bid for the whole company under Moroccan law, two senior bankers said.

"We are assessing the probability of the need to acquire the whole company," a senior banker said.

Potentially having to fund the acquisition of the whole company is also a consideration for other bidders, including Etisalat, the UAE's biggest telecom operator, and South Korea's KT Corp.

Binding bids are due on April 22, one banker said.

Vivendi hired BNP Paribas and Societe Generale last August to advise on the sale of its stake, worth around $6 billion.

Etisalat has been talking to banks about a syndicated loan of $6-8bn since mid February and appointed BNP Paribas as a financial adviser in late February.

Qtel is seeking a smaller loan as the company has more financing options and is talking to around 9-10 banks about committed financing for a bid, bankers said. Qtel is being advised by JP Morgan.

KT Corp, Korea's biggest telecom, has lined up Citigroup, Credit Suisse and Societe Generale to advise and finance a potential acquisition if its bid is successful.

Raising additional funds to back a bid for 100 percent of Maroc Telecom in the short term should not be a problem for the bidders, bankers said.

Qtel and Etisalat had been looking at financing packages that included bridge loans to bond issues but would be unlikely to increase the size of their debt financing to avoid putting pressure on their credit ratings, bankers said.

Qtel and Etisalat could choose to finance a higher initial purchase price with cash on balance sheet, shareholder loans or a rights issue, they added.

Bankers are exploring ways for the Moroccan government to keep its stake, including putting its equity investment in a Special Purpose Vehicle (SPV), sources said.

Separately, Qtel is expected to close a $1bn loan with 14 banks by the end of March, for general corporate purposes.

Related:
Companies

Market Performance

Qatar Telecom
0.0
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
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 10
    UAE teens among the highest for obesity rates

    Everyone in UAE knows that biggest is best.

    UAE may not light up the international league tables in standard of living, education standards, press... more

    Friday, 29 August 2014 4:20 PM - Proud UAEer
  • 9
    Saudi Arabia seeks talks on hiring of Sri Lankan maids

    perhaps the unemployed saudi men or the millions of women who are not allowed to work could pick up a broom and start sweeping their own houses. more

    Sunday, 31 August 2014 3:28 PM - nice
  • 9
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew