Maroc Telecom

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In December of 2000, Vivendi Universal acquired a 35% stake in Morocco's incumbent telecom operator, Maroc Telecom (MT) for US$2.11 billion. The deal was part of the partial divestiture program overseen by Morocco's national Telecom regulator, Agence Nationale de Reglementation des telecommunications (ANRT). In addition to the 35% stake, a shareholders' agreement allowed the French company operative control of Maroc Telecom until September 1, 2005. Vivendi Universal was also to operate a new GSM network to compete with incumbent Telefonica-led Medi Telecom. In November 2004, Morocco sold an additional 16% stake to Vivendi at a price of $US1.46 billion. Vivendi then held a 51% stake in MT, giving Vivendi full operational control. The deal was to be effective and payment was to be made in January 2005, with half of the amount financed by long-term debt raised in Morocco. Then in December of 2004, Morocco floated 14.9% of the company, raising 9.0 billion dirhams (US$1.07 billion). The 131 million shares put up for sale included 17 million available under a greenshoe option. The price for its IPO was 68.25 dirhams (US$8.15) a share, valuing the Moroccan telecom company at about 60 billion dirhams, or US$7.17 billion. Shares in Maroc Telecom began trading on December 13, 2004. Neither the government nor Vivendi was to be able to sell any more shares in the telecoms operator in the nine months following the flotation, while the government, even at 34% ownership, retained veto rights over some of Maroc Telecom's decisions and a measure of control over the future ownership of the company. In the mobile sector, MT had nearly 6.4 million subscribers at the end of 2004, giving it a 67.5% market share. MT's fixed telephony and data transmission network provided national coverage and had a switching capacity of nearly 1.9 million lines. In July 2006 Maroc Telecom was awarded a 25 year 3G mobile license. The license was awarded through an open competitive tender judged on the best technical offer criterion. Four companies applied for a 3G license: MAROC CONNECT (id 4381), NEJMA TELECOM MAROC, MEDI TELECOM (project 2335), and ITISSALAT AL-MAGHRIB (project 2675). Nejma’s bid was rejected, while the other three were accepted. Each license cost $41.2 million. Capex 2012: Wireless Intelligence Note on # of users: mobile subscribers available on wireless intelligence, but annual report of Vivendi gives mobile + fixed line users separately. E.g. 2011: 17.1 million mobile users + 1.214 fixed line users.