Etisalat splashed out more than $500 million to increase its stake in Moroccan operator Maroc Telecom, a deal it declared would positively impact its earnings and potentially increase investor dividends.
In a regulatory filing, Etisalat remarked it had agreed a $505 million deal with the Abu Dhabi Fund to acquire its stake in Etisalat Investment North Africa (EINA), which owns a stake in the Maroc Telecom Group through another holding company.
The operator stated the deal raised its effective ownership in Maroc Telecom from 48.4 per cent to 53 per cent, a move it expects to boost its consolidated net profit due to lower minority interest in the company and increase future dividends.
Maroc Telecom has operations in 11 countries in West Africa and is the largest operator in home market Morocco with GSMA Intelligence showing it had 19.6 million mobile connections in Q2, well ahead of competitors inwi and Orange Maroc.
For Etisalat, the latest deal increases its stake in the company, of which it was already a majority owner.
The agreed price is subject to change “based on prevailing market conditions such as foreign exchange rates” prior to the deal being completed upon securing certain undisclosed conditions.Subscribe to our daily newsletter Back