Etisalat to acquire Vivendi stake in Maroc Telecom
Emirates Telecommunications Corp. (ETISALAT) announced that they have entered exclusive talks for the purchase of Vivendi SA (VIV) stake in Maroc Telecom SA. Etisalat plans to buy the stakes for EUR4.2 billion or US$5.5 billion. Vivendi's 53% stake was priced at 92.6 dirhams per Maroc Telecom share for a total of EUR3.9 billion. Etisalat said that they will also pay EUR310 million for the dividend Vivendi was to receive from Maroc Telecom.
Vivendi said that they are seeking to shift their business focus away from telecommunications and more into content. Vivendi is set to focus more on business in the music company Universal Music Group, as well as with the video-game publisher Activision Blizzard Inc. (ATVI) and with pay-TV company Canal Plus. The deal with Maroc Telecom will help Vivendi Chairman Jean-Rene Fourtou to show investors that he can deliver promises made regarding asset sales.
The Vivendi deal will give Etisalat control over the largest mobile carrier based in Morocco. Etisalat announced that they have secured the commitment from local and international banks for the financing of the transaction.