VENTURES AFRICA – UAE-based telecommunication giant Etisalat has secured a $4.4 billion syndicated capital to fund the acquisition of a stake in Morocco’s Maroc Telecom as it seeks to deepen expansion in Africa.
Last November, Etisalat agreed to purchase a 53 percent stake in Maroc Telecom – considered Morocco’s biggest wireless operator – for a reported 4.2 billion euros, but has stalled completion to source the capital needed for the transaction.
The 53 percent stake is owned by Paris headquartered multimedia firm, Vivendi.
With a $4.4 billion capital securely acquired from 17 banks, Etisalat is keen to speed up the process, with the deal expected to be completed by the end of May, a Reuters report confirmed.
Etisalat says acquiring Maroc allows it grow its presence in Africa’s fledging telecom market and diversifies revenue streams beyond Nigeria and Egypt, where it currently operates in.
The Middle Eastern firm has a market cap exceeding $22 billion, making it the 12 largest mobile operator in the world. It is considered the most powerful company in the country.
It is aiming to increase control in the Moroccan telecom firm and is pushing to acquire the 17 percent stake held by minority shareholders. Morocco’s government owns the 30 percent left and will be less willing to relinquish control in the country’s largest operator.
Maroc Telecom also controls interests in other African markets including Gabon, Burkina Faso, Mauritania and Mali.
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