Etisalat shareholders give backing for Moroccan bid

Mergers, Acquisitions and Financial Results

UAE-based telco Etisalat has received shareholder backing to seek external funding to finance its bid for a 53% stake in Moroccan operator Maroc Telecom. Etisalat shareholders were asked to approve the move at an extraordinary shareholders’ meeting yesterday; their backing was required because the amount of funding exceeds Etisalat’s own capital.

A report from Reuters suggests that 68% of shareholders approved the move while the maximum amount of financing cannot exceed EUR6.67 billion (USD8.60 billion). Etisalat has reportedly secured a USD8 billion dual-tranche loan facility to finance its bid for Vivendi Group’s 53% stake in Maroc Telecom, while the only rival bidder, Ooredoo of Qatar, has lined up a loan of up to USD12 billion.