Sale of 8% of Maroc Telecom will bring up to 9.5 billion dirhams to the Government

7 June 2019

Mergers, Acquisitions and Financial Results

The state is preparing to sell up to 8% stake in Maroc Telecom. The operation will take place in the coming weeks.

The telecom operator led by Abdeslam Ahizoun announced the news to the market, following the receipt of a letter from the Minister of Economy and Finance informing him of the intention of the Kingdom of Morocco to make this assignment.

The operation will be through the sale of blocks of shares coupled with a public offer of sale. The OPV can theoretically take in Casablanca and Paris, both places where the company is listed. But the focus will be on selling the shares in Casablanca.

A news that will certainly be welcomed by investors, on the lookout for fresh paper for lack of stock market opportunities.

Given its market capitalization, set at 119.3 billion dirhams at the close of trading on Friday 31 May, the sale of 8% of the shares will bring the state more than 9.5 billion dirhams.

This amount may vary upwards or downwards according to the valuation that will be proposed by the banks and state councils and retained by the valuation commission appointed a few weeks ago by the King.

Maroc Telecom currently costs 135.75 dirhams per share. Not far from its average over a year and it has varied between 135 and 155 dirhams. The valuation for the sale will probably not move beyond this range.

The recipe may also go down if the state decides not to go up to 8%. The release did not set the share to give, but was content to set an 8% ceiling.

This operation is perfectly in line with the objectives of the government, which has included in its Finance Act a total of 10 billion dirhams of privatization receipts.

Who will buy the 8% of the State’s shares ?

Maroc Telecom's capital is now 53% owned by Etisalat. The state has 30% there is 16.69% allocated for a float on the stock exchange.

Part of the securities offered for sale will be served directly to the market through the OPV. This share will be minimal and will probably not exceed 3 billion dirhams. "The market can absorb more. But an OPV at more than 3 billion will be huge. I do not think we will exceed this level, "says a trader.

Source: Medias 24