Etisalat has decided to offer its West African business for $650 million to Maroc Telecom in order o carry its business in the region.
Through this venture, Etisalat, which plans to buy majority stake in Maroc Telecom, will be able to pass on the assets to Maroc Telecom. The UAE telecom operator believes that it should take advantage of Maroc Telecom’s operation as it presented a 9.5% increase in last year’s returns from Gabon, Mauritania, Faso, Mali, and Burkina.
A West African subsidiary of Etisalat, Atlantique Telecom, will be put up for sale together with its Benin unit and separate regional information technology. The said subsidiary has a network in areas like Togo, Niger, Ivory Coast, Gabon, and Center African Republic.
The sale is reliant on Etisalat closing a 4.2 billion euro deal to buy Vivendi’s 53% stake in Maroc Telecom. This deal is expected to be completed by the end of May.
Before Etisalat took over Atlantique Telecom in 2010, it payed AED 432 million for getting the 50% of the stake in 2005 and eventually bought another 20% in 2007 for AED 419 million.
According to a reliable source, Etisalat made its way into a challenging and competitive market which probably dominated by a language gap.
In an investor presentation held last March, Etisalat has taken interest in doing business with Maroc Telecom for its profound knowledge of the African market and significant understanding of turning around incumbents.