10 September 2021
Etisalat increased its ownership in Etisalat Investment North Africa (EINA) to 100% by acquiring the Abu Dhabi Fund for Development’s 8.7% stake in EINA, boosting its effective ownership in Maroc Telecom Group to 53% from 48.4%.
The acquisition cost of about US$505m is subject to change according to prevailing market conditions such as foreign exchange rates prior to the transaction completion, Etisalat said. The investment will be funded through bank loans.
“This will positively impact Etisalat Group’s consolidated net profits due to lower minority interest of group consolidated results and potentially increase future dividends from Maroc Telecom Group,” Karim Bennis, chief financial officer of Etisalat Group, said in the statement.
UAE-based telecoms operator Etisalat's net profit attributable for the three-month period to the end of June increased about 0.4% to Dh2.39bn (US$651m) from the same period a year earlier, as a result of higher revenue.
The company has operations in 16 countries across the Middle East, Asia and Africa, serving more than 156 million customers. Maroc Telecom operates in 11 countries in west Africa.
Etisalat is also exploring the development of 6G, the next generation mobile network that provides faster connectivity than existing services.
“We will remain focused on investments in futuristic solutions and next generation technologies, enhancing the overall customer experience while delivering long-term value for all our shareholders,” Hatem Dowidar, chief executive of Etisalat Group, said in June.
Etisalat is conducting research and developing international standards that will be the main building blocks to create a 6G network, the company said at the time.