The deal increases Etisalat’s stake in the Moroccan operator from 48.4% to 53%
Etisalat Group has today announced that they have acquired full ownership of the Etisalat Investment North Africa (EINA), having purchased the 8.7% stake it did not own from Abu Dhabi Fund for Development for $505 million.
EINA, in turn, holds a stake in the Maroc Telecom Group via another holding company, with Etisalat’s investment thus increasing their effective ownership in the Moroccan telecoms operator from 48.4% to 53%.
The exact value of the deal is reportedly subject to change based on “prevailing market conditions”, such as foreign exchange rates.
Etisalat argues that this investment will result in a boost in net profit, due to lower minority interest of group consolidated results, and will potentially increase future dividends from Maroc.
Marco Telecom operates under various brands in 11 West African countries and is the largest operator in its home market of Morocco. Etisalat first bought a stake in the business back in 2014, paying €4.2 billion in exchange for a 53% stake.
In related news, two days ago Etisalat appointed Masood M. Sharif Mahmood as Chief Executive Officer for the group’s United Arab Emirates (UAE) operations. The position has been created as part of the group’s continued agile transformation strategy aimed at diversifying and new growth opportunities.
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