Etisalat minority shares acquisition rejected

Moroccan Securities Commission does not approve proposal to buy minority shares
Etisalat, Maroc Telecom

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Etisalat announced that its offer to buy 17% of the minority shareholding of Maroc Telecom has been rejected by the country’s financial authority. The Securities Commission, Conseil Deontologique des Valeurs Mobilieres (CDVM), ruled the offer was “non-admissible”.

CDVM said in a statement: “in accordance with Article 18 of Law 26-03 the takeover bid project was declared non-admissible with regards to the national strategic economic interests.”

Early this month, the UAE based telecommunication company acquire 53% stake in Marco Telecom. After this announcement, Etisalat published its intention to buy minority shares in the Moroccan company. However, the company didn’t reveal the price proposed per share.

The company has also received a $500 million grant from the government of Abu Dhabi for the acquisition of the 53% stake in the North African company. The deal was described as a “no-strings-attached grant”. According to Telegeography, “the state will reportedly provide a quarter of the funding for the purchase of the stake, worth EUR4.14 billion ($5.64 billion) from France’s media group Vivendi, with the rest coming from bank loans.” 

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