Middle-Eastern mobile telecommunications provider Etisalat has signed a $4.36 billion deal in order to acquire Vivendi SA’s stake in Moroccan mobile service provider Maroc Telecom. The deal was signed with 17 banks to fund its acquisition.
According to Bloomberg, “the funding includes a 12-month bridge loan of $2.9-billion priced at 45 basis points above the Euro interbank offered rate, rising to 60 basis points above Euribor after six months.” The company also signed a three-year $1.4-billion loan priced at 87 basis points above Euribor.
According to Gulf Business, Etisalat needs to make an offer to minority stakeholders in order for the deal to go through.
“Morocco’s takeover rules require Etisalat to make a buyout offer for Maroc Telecom’s minority shareholders. Etisalat has declined to provide further details, but analysts say Morocco regulations allow buyers to offer minority shareholders a different price per share to the principle deal itself. The government owns 30 per cent of Maroc Telecom, with the remaining 17 per cent the company’s free float.”
Etisalat announced in November that they intend to acquire Vivendi’s 53 percent holding for $5.3-billion euros, which included a further $415-million in 2012 dividends from the Moroccan firm.
“The deal is a key part of Vivendi’s strategy to cut its debts and focus on areas like music and pay-TV, which it thinks have greater growth potential. Etisalat meanwhile will get new revenue streams outside of the domestic market which still dominates its earnings despite previous expansion drives,” Reuters wrote.
Charlie Fripp – Consumer Tech editor