UAE based Emirates Telecommunications Corporation, also known as Etisalat has expressed its interest to raise its ownership in Maroc Telecom Group by fully acquiring Etisalat Investment North Africa LLC (EINA) for $505 million from Abu Dhabi Fund for Development, according to media reports. Reports also suggest that Etisalat has acquired an 8.7 percent stake in EINA held by Abu Dhabi Fund for Development.
Etisalat Investment North Africa holds exposures in Société de Participation dans les Télécommunications (SPT) and also has an investment in the Maroc Telecom Group. This current deal with Abu Dhabi Fund for Development is expected to ultimately increase Etisalat Group’s effective ownership in Maroc from 48.4 percent to 53 percent.
Maroc Telecom has its presence in 11 countries including Morocco and West Africa where they offer mobile services and fixed voice and broadband, mobile money and other telecom services.
Maroc telecom recently announced a decline of 7.1 percent in its domestic revenue, with the turnover for the first half of 2021 reaching $2 billion. The board also recently renewed Abdeslam Ahizoune’s term as chairman until March 2023.
Back in 2014, Etisalat bought into Maroc Telecom through EINA in which Etisalat, where Etisalat owned 91.3 percent and the rest, was owned by Abu Dhabi Fund for Development. The current acquisition will be funded by bank borrowings and will increase Etisalat’s ownership of EINA to 100 percent, as conveyed by a statement released by the telecom company.
The transaction will be closed after certain conditions have been met and it is expected to positively impact the Abu Dhabi headquartered Etisalat’s consolidated net profits, because of lower minority interest of group consolidated results and potentially increase future dividends from Maroc.