Etisalat finalized a contract to take over an additional 4.6% stake in the Maroc Telecom Group. This acquisition will increase the telecom mogul to obtain operative ownership in Maroc Group’s equity from 48.4% to 53%. The UAE-based goliath of telecom – Etisalat, will build its proprietorship in Maroc Telecom Group by completely securing Etisalat Investment North Africa LLC (EINA) for $505 million from the Abu Dhabi Fund for Development.
The group operates in 16 countries across the Middle East, Asia, and Africa, with a customer base of more than 156 million customers. With this kind of abundant customer base, Etisalat is considering developing 6G, which is the next-gen mobile network that facilitates instantaneous connectivity.
Maroc Telecom works in 11 nations in Morocco and West Africa and offers telecom facilities, including mobile and fixed voice, broadband, and mobile-centric payments.
EINA possesses stakes in Maroc Telecom Group via Société de Participation dans les Télécommunications (SPT). This deal will expand Etisalat Group‘s gripping possession from 48.4% to 53% stake in Maroc Telecom Group.
The group will completely attain EINA by expanding its equity by up to an 8.7% stake, an arrangement which will be supported by bank borrowings, the telecom said in an explanation on Abu Dhabi Securities Exchange.
In 2014 the group got tied up with Maroc Telecom, via EINA, in which Etisalat claimed a 91.3% stake and state-possessed Abu Dhabi Fund for Development held the remaining 8.7% stake. The acquisition, which will be financed by bank borrowings, will expand Etisalat’s proprietorship in EINA to 100%.
The exchange will emphatically affect the group’s amalgamated net profits because of the lower minority interest of cohesive group results and possibly higher future profits from Maroc Telecom.