Emirates Telecommunications Corp., (ETISALAT) the most valuable listed company in the United Arab Emirates, signed a 3.15 billion-euro ($4.36 billion) deal with 17 banks to fund its acquisition of Vivendi SA (VIV)’s stake in Maroc Telecom.
The funding includes a 12-month bridge loan of 2.1 billion euros priced at 45 basis points above the Euro interbank offered rate, rising to 60 basis points above Euribor after six months, the company said today in a statement. Etisalat, which has a market value of 90 billion dirhams, also signed a three-year 1.05 billion euros loan priced at 87 basis points above Euribor.
Telecommunications companies in the Middle East are expanding abroad as domestic growth slows. Etisalat agreed in November to buy Vivendi’s 53 percent stake in Maroc Telecom, Morocco’s biggest wireless carrier, for about 4.2 billion euros. The deal, which will be completed at the end of May, according to Serkan Okandan, Etisalat’s chief financial officer, will increase the company’s presence in Africa beyond its Egypt and Nigeria units.
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