Etisalat Borrows $4.4 Billion to Fund Takeover of Maroc Telecom
Published on: 28th Apr 2014
By: Ian Mansfield
UAE based Etisalat has announced that it has secured a multi currency loan worth EUR3.15 billion (USD4.4 billion) with a group of 17 banks.
The company said that the loan is to finance its previously announced acquisition of Vivendi's 52% stake in Maroc Telecom.
Etisalat has previously indicated that it aims to complete the long running purchase of a majority stake in Morocco's Maroc Telecom by the end of May.
Etisalat agreed to buy the 53% stake in the Moroccan mobile network from France's Vivendi last November following a protracted bidding process for EUR4.2 billion (USD5.8 billion), but completion has taken longer than expected.
The loan is made up of a EUR2.1 billion bridging loan that needs to be repaid in 12 months time, and a EUR1.05 billion loan that needs to be repaid in three years.
Vivendi owns 53% of Maroc Telecom, with 17% listed on a local stock market. The remaining 30% is owned by the government which also has a veto over any change in ownership.
Maroc Telecom has operations in Gabon, Mauritania, Burkina Faso and Mali.