KT drops interest in Maroc Telecom stake

15 April 2013 | Mitch Sayers


KT has dropped its interests in acquiring Vivendi's 53% stake in Maroc Telecom due to what it perceives as a high valuation.

The South Korean operator said it had withdrawn an offer for the full stake as it feels the proposed figure of €5.5 billion does not match its own valuation.

According to Reuters, KT said it “could not help but be concerned about the discrepancy between KT’s own valuation and that of the market and sell-side,” in an email to its financial advisers.

KT did say, however, that it may still consider various investment options which could include acquiring a minor share in the Moroccan operator.

Associated debt and uncertainty over a “tax dispute” were also issues expressed by KT. French operator Vivendi is reportedly open to preliminary bids until April 22 as it looks to demerge loss making assets.

Two Middle Eastern operators, Ooredoo and Etisalat, along with Saudi Telecom, are thought to be the remaining interested parties.