28 Apr 2014
Emirates Telecommunications Corporation (Etisalat) has announced the signing of a multi-currency club deal of EUR3.15 billion (USD4.4 billion) with a group of 17 international, regional and local banks to fund its acquisition of a 53% stake in Maroc Telecom. In November 2013 Etisalat signed a share purchase agreement with French media conglomerate Vivendi for its majority stake in Maroc Telecom, under which the UAE telco will pay EUR3.9 billion for the shares, in addition to EUR300 million in Maroc Telecom’s dividends for 2012. In a statement published on the Abu Dhabi Securities Exchange, Etisalat said the new financing consists of two facilities that can be utilised in euros and/or US dollars: the first tranche is a twelve month bridge loan totalling EUR2.1 billion, while the second is a three-year loan amounting to EUR1.05 billion. Utilisation of funds under the two facilities will take place at the closing of the transaction with Vivendi, which is expected before the end of May 2014.