UAE’S largest telecom firm acquires Maroc Telecom for $505 million

Etisalat, Emirate’s biggest telecom firm saw a 2.4 percent increase in its stock market after agreeing to acquire another stake in Maroc Telecom Group for $505 million.

After obtaining the Abu Dhabi Fund for Development’s 8.7 percent stake in the holding firm Etisalat Investment North Africa (EINA), the deal boosted Etisalat Group’s ownership in Maroc Telecom Group from 48.4 percent to 53 percent.

The investment will be funded through bank loans, and the acquisition cost is subjected to changes as foreign exchange rates are erratic, according to a statement issued by Etisalat to the Abu Dhabi Securities Exchange.

Karim Bennis, chief financial officer of Etisalat Group boasted about the acquisition, noting that it will positively impact consolidated net profits of the telecom firm “due to the lower minority interest of group consolidated results.”

As Etisalat’s revenues continue to increase in number, the telecom’s net profit increased about 0.4 percent, totaling at $651 million.

The agreement will also potentially increase future dividends from Maroc Telecom Group, according to Bennis.

The acquisition will surely benefit the telecom giant, as Maroc Telecom is the current leader in the Moroccan market with almost 20 million subscribers.

The company currently operates in 10 markets across West Africa.