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Etisalat shareholders approve funds for Maroc deal

Telco gains approval to raise funds up to $8.57bn limit - report

The sum Etisalat can borrow can exceed its capital but is limited to $8.57bn.
The sum Etisalat can borrow can exceed its capital but is limited to $8.57bn.

Shareholders of UAE telco Etisalat have approved a plan by the company’s board to raise funds for the proposed acquisition of a 53% stake in Maroc Telecom.

Etisalat, which is competing with Qatar’s Ooredoo for the stake, said that shareholders had “approved the board’s recommendation to raise external funding in excess of the corporation’s capital as per the Articles of Association of the Corporation”.

The sum Etisalat can borrow can exceed its capital but is limited to $8.57bn, according to a report from Reuters.

The use of the new external funding remains subject to final terms and conditions to acquire Vivendi’s 53% stake in Maroc Telecom, which is subject to the completion of the remaining acquisition requirements.

Ooredoo said on Sunday that it had raised $12bn to finance its bid for a majority stake in Maroc TelecomSA.