The Moroccan government wants Etisalat to work with a local partner as a condition of the UAE-based operator group buying a majority stake in Maroc Telecom, reports Reuters.

As the Moroccan government owns 30 per cent of Maroc Telecom, Etisalat requires its approval for the deal to buy the 53 per cent stake from French media group Vivendi to go ahead.

The government is keen that the new owner of Maroc Telecom invests heavily in broadband and mobile infrastructure to boost the economy. The operator is the largest employer in the country and also has operations in Burkina Faso, Gabon, Mali and Mauritania.

The government has proposed that a local partner buys a 17 per cent stake in Maroc Telecom that is floated on the stock market or acquires part of the 30 per cent stake held by the government.

Etisalat would still obtain the 53 per cent stake being sold by Vivendi and is not believed to be opposed to such a deal in principle. Although the proposal is slowing the progress of the deal, it is unlikely to put it at risk, according to Reuters‘ sources.

One source said the government would like to rely on another “solid Moroccan partner that could eventually become the voice of Morocco within the company’s board”.

A possible local partner candidate is public bank Caisse de Depot et de Gestion, which is charged with holding national savings and investing in the economy. The bank could lead a Moroccan consortium.

Etisalat was left as the only company bidding for the stake in Morocco’s number-one operator when Ooredoo withdrew its interest last month saying it was no longer in the best interests of the Qatar-based operator group to commit capital “to what has become a lengthy process”.

Etisalat and Ooredoo submitted binding offers in April, although Ooredoo’s was reported to be a lower offer. Etisalat was reported to have arranged an €8 billion loan to finance its bid.

South Korean’s KT was previously interested in the stake but dropped out of the race in April, citing concern about the valuation of the stake.

Vivendi, which also owns French operator SFR, is selling its stake in Maroc Telecom in order to cut debt and reduce its exposure to the capital-intensive telecom business. The stake is reported to be worth between €4.1 billion and €4.5 billion.