Etisalat in loan talks for Maroc Telecom bid

Etisalat in loan talks for Maroc Telecom bid

UAE carrier Etisalat is reportedly in talks with banks regarding a loan of up to $8 billion to finance a bid for Vivendi’s Maroc Telecom stake.

One banker told Reuters that Etisalat has asked banks to bid for the roles of M&A and financing advisor.

An $8 billion loan would be the largest for a Gulf merger and acquisition in six years.

The 53% stake has also attracted interest from Qatar Telecom (Qtel) and South Korea’s KT Corp.

Qtel is in talks with banks including JP Morgan regarding financing for a possible bid and it is believed the bank could underwrite an acquisition loan on its own or with support of one or two more banks.

KT has hired Citigroup, Credit Suisse and Societe Generale to advise and finance its potential acquisition, according to Reuters.

On top of its operations in Morocco, Maroc also owns majority interests in Gabon Telecom, Mauritania’s MaurieTel, Burkina Faso’s Onatel and Mali’s Sotelma, making the stake a particularly attractive option for carriers with ambitions to expand in Africa.

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