By Ruth Bender and Sam Schechner
PARIS--French conglomerate Vivendi SA (VIV.FR) Tuesday said it
has entered into exclusive negotiations with Emirates
Telecommunications Corp. (ETISALAT.AD) to sell its controlling
stake in African phone operator Maroc Telecom (IAM.CL) for 4.2
billion euros ($5.5 billion) in cash.
Selling Maroc Telecom is a crucial move in Vivendi's broader
effort to get rid of its telecommunications assets and reshape
itself as a smaller business focused on a lineup of media
companies.
The offer from Emirates Telecommunications, also known as
Etisalat, values Vivendi's 53% stake in Maroc Telecom at 92.6
Moroccan dirhams a share and Vivendi would receive a total of
EUR4.2 billion in cash for the stake, including EUR310 million in
dividends for the year 2012, Vivendi said in a statement.
Etisalat is the last remaining bidder for the stake in a bidding
process that has lasted many months. In June, Qatar Telecom
withdrew the binding offer it submitted earlier in the year.
Vivendi and Etisalat aim to seal the deal before the end of this
year, subject to the approval of the Moroccan government and
regulatory approvals in the countries where Maroc Telecom operates,
Vivendi said.
Talks had bogged down over disagreements between the Moroccan
government, Etisalat and Vivendi over potential future tax
liabilities and other minority shareholders, but those concerns
have been largely resolved in informal talks with the government,
according to people familiar with the matter.
The Moroccan state owns a 30% stake in the phone operator.
Write to Ruth Bender at ruth.bender@dowjones.com or Sam
Schechner at sam.schechner@dowjones.com
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