Etisalat has confirmed that it will sell its operations in West Africa to Maroc Telecom.
The Middle Eastern recently procured funding that will enable it to acquire a majority stake in the Moroccan operator.
The deal will see Maroc Telecom acquire Etisalat’s Atlantique Telecom, a wholly-owned subsidiary which provides voice and data services in various French-speaking countries in West Africa, including Benin, Central African Republic, Gabon, the Ivory Coast, Niger and Togo. Atlantique operates under the Moov brand.
Maroc Telecom is also acquiring Prestige Telecom as part of the deal. The latter firm, based in the Ivory Coast, provides IT services to Etisalat’s West African units. The agreement therefore encompasses 7 companies, with a total value of $650 million.
The deal can only be finalised if it receives the green light from the regulators in each of the six countries where Etisalat’s regional subsidiaries are present. In addition, Etisalat will only sell the operations if it successfully acquires Vivendi’s 53% stake in Maroc Telecom. The operator recently secured funding to launch its bid.
While Etisalat does not accrue much of a profit from the six subsidiaries included in the deal, Maroc Telecom could revitalise them. The Moroccan operator has experience - and notable success – in numerous African markets, including Burkina Faso, Gabon, Mali and Mauritania.
