Etisalat to conclude Vivendi deal in 3 months

Acquisition to raise investment to Dh41.5 billion in int’l markets

Etisalat is set to conclude its largest-ever Dh19.4 billion deal of acquiring Vivendi’s majority stake in Maroc Telecom in next three months, its top official said.

Etisalat Group Chief Executive Officer Ahmad AbdulKarim Julfar disclosed that the mega deal would raise the overall investment of the Etisalat Group abroad to Dh41.5 billion in 16 international markets.

“Etisalat concluded the necessary financing agreements through 17 local and international banks in order to complete the deal. However, the company would share a part of the finance from its own resources, but has yet to specify how much it would pay,” Julfar told Khaleej Times on the sidelines of the Mobile World Congress held in Barcelona.

Julfar underscored that the etisalat’s investments in the Maroc Telecom is equal to the company’s total investment volume abroad.

“The deal would take time to conclude because of the required government procedures,” he noted.

He said services prices in the local market dropped by 50 per cent in the past two years amid growing competition in the market.

Julfar said etisalat’s aggregate foreign investments are estimated at Dh22 billion, apart from the Saudi market in which the Etisalat Group possesses a 26 per cent share in Mobily. “We tried to increase our share in Mobily to 50 per cent, but the Saudi Telecommunication Regulatory Authority imposes restrictions.”

“Had we acquired more than 26 per cent stake in Mobily, the Etisalat Group’s revenues of its foreign investments could have crossed 50 per cent of its total returns,” he added.

He said the Saudi market is the biggest foreign telecom market in which etisalat is working in terms of profitability and revenues.

Regarding the Egyptian market, he said etisalat looks forward to obtaining a multi-service licence to offer a wide range of its services in Egypt, including the land-line services. “We have been promised by the Egyptian government to grant the multi-service [unified] licence,” he said.

About the possible entry of fourth mobile phone operator in Egypt, he said it would hit the interests of existing telecom companies in the country.

“If a pertinent decision is issued, we would opt to the international arbitration,” he said.

According to local media reports, he Egypt’s National Telecommunication Regulatory Authority may issue a permit to the Egypt Telecommunication Company for mobile phone operations in the country. At present etisalat, Vodafone and Orange are offering mobile-phone services in the country.

Reporting from Barcelona