Technology company Vivendi announced
that they have concluded talks with Etisalat of the United Arab
Emirates (UAE) in an all-cash deal, which would see it acquire a 53% stake
in Maroc Telecom. The deal is reportedly worth $5.6-billion.
“Morocco Telecom notes that Vivendi
and Etisalat have signed the final agreement for the sale by Vivendi Etisalat
to 53% of the capital of Morocco Telecom. Morocco Telecom and its subsidiaries
follow the process to take all steps incumbent on them,” Maroc Telecom said in
a short statement.
According to the Financial Times,
“the sale finalises an announcement first made in the summer as the heavily
indebted French media and telecoms group sells assets to refocus its sprawling
business interests on media and entertainment.”
At the end of 2012, Vivendi had a revenue
of over €28.994-billion, and is currently the owner of French TV channel and
movie producer Canal+ Group, as well as Universal Music Group.
The company sold its controlling
stake in games developer Activision in September this year, although it still
holds a 12% stake.
The Financial Times also stated that
Etisalat has not been without its problems. “The Gulf’s biggest telecoms
operator has struggled in recent years, as a multi-billion-dollar foreign
investment programme failed to translate into profits and tougher competition
in all markets has squeezed profitability. The deal with Vivendi comes two
years after Etisalat abandoned talks to buy a $12bn majority stake in Zain,
Kuwait’s biggest phone company.”
