Etisalat Group recently signed a $505 million agreement to acquire the 8.7% stake of the Abu Dhabi Fund For Development in Etisalat Investment North Africa LLC (EINA). This eventually increases Etisalat’s ownership of EINA to 100% as well as its ownership of Maroc Telecom Group from 48.4% to 53.0%.
This is made possible as EINA holds shares in Maroc Telecom Group through investment in Société de Participation dans les Télécommunications (SPT). In May 2014, Etisalat successfully held 91.3% of Maroc Telecom through EINA, valued at $5.6 billion. State-owned Abu Dhabi Fund for Development held the rest.
Maroc Telecom Group is the largest telecom operator in Morocco, having operations in 11 countries in Morocco and West Africa. It offers telecom services such as mobile and fixed voice and broadband, and mobile money.
The cost of acquisition, funded by bank borrowings, is subject to change based on prevailing market conditions such as foreign exchange rates. The closing of the transaction is also subject to fulfilling certain conditions.
Karim Bennis, chief financial officer, Etisalat Group, said in a statement, “Accordingly, this will positively impact Etisalat Group’s consolidated net profits due to lower minority interest of group consolidated results and potentially increase future dividends from Maroc Telecom Group.”