Etisalat Issues Offer to Buy Out Minority Shareholders in Maroc Telecom
Published on: 21st May 2014
By: Ian Mansfield
UAE based Etisalat has issued an offer to buy out the remaining minority shareholders in Maroc Telecom.
Etisalat has just completed a deal that saw it buy a 53% stake in the company from Vivendi for USD5.8 billion, and had previously warned that it might be required to buy out the remaining shareholders.
In a filing to the local stock market, the company confirmed that it is submitting the tender based on the stock market rules that require anyone owning more than 40% of the shares to make such a bid.
The shareholders are not required to sell though -- so Etisalat could end up with a negligible increase in its stake.
Just 17% of the company is listed on the local stock market, with the government owning the remaining 30%. The government is not expected to sell its stake.
Although Etisalat is required to put in a bid for the 17%, it is likely that the government will seek to in some way prevent a total buy out as it would reduce liquidity in the stock exchange.
Maroc Telecom has operations in Gabon, Mauritania, Burkina Faso and Mali, and recently acquired Etisalat's stakes in its subsidiaries located in Benin, Central African Republic, Ivory Coast, Gabon, Niger and Togo.