Vivendi in Exclusive Talks with Etisalat to Sell Maroc Telecom Stake
French conglomerate, Vivendi has confirmed that it is now in exclusive negotiations with Etisalat to finalize an agreement for the sale of its 53% shareholding in Maroc Telecom.
Etisalat was the last bidder left in the race to buy the stake after the other potential buyers all pulled out.
Etisalat's offer values the controlling stake at EUR4.2 billion in cash, including the 2012 EUR310 million dividend.
Taking into account Maroc Telecom's net debt, the transaction is being carried out at a proportional enterprise value for Vivendi's stake of EUR4.5 billion, corresponding to an EBITDA multiple of 6.2x.
The final agreement is subject to informing and consulting with the French Works Councils and to negotiating agreements between Etisalat and the Moroccan government (terms of the shareholders' agreement and key investment conditions).
Vivendi and Etisalat intend to close the transaction before end 2013, provided they obtain the regulatory approvals required both in Morocco and in the countries where Maroc Telecom operates.
Discussions with a consortium of Moroccan institutional investors, aiming to define the conditions of its possible investment, will be taking place in parallel.
In it's statement, Etisalat noted that local regulations would require it to offer to also buy out the minority shareholders, so it could end up with more than the 53% being sold by Vi