Etisalat shares surged yesterday after the Gulf's biggest telecoms operator said it would submit a binding bid to buy Vivendi's 53 per cent holding in Maroc Telecom.
Qatar Telecom also intends to bid, said a person familiar with the matter, asking not be identified because the deliberations are confidential. Vivendi's share has a market value of about US$5.9 billion.
The stake sale is part of Vivendi's plan to refocus on media and content distribution, rather than telecoms, after its chairman, Jean-Rene Fourtou, and the board decided last year to sell assets instead of splitting the Paris-based company in two.
South Korea's KT Corp, which had expressed interest in the Maroc Telecom stake, said on April 15 that it had dropped out because of "big differences" in valuation.
"The critical event is not the sale price," said Saeed Baradar, an equity sales specialist at Société Générale in London. At market value, proceeds from the stake disposal "should be sufficient to reset the debt to allow Vivendi to split itself up into media and telecoms entities and to erode the current conglomerate discount in the share price".
Vivendi has a market value of €22.1bn, compared with net debt of €13.4bn at the end of last year. Mr Fourtou is set to meet shareholders at an annual meeting on Tuesday.
Etisalat shares jumped as much as 5.5 per cent in Abu Dhabi before closing almost 4 per cent higher.
It said it may end up owning a greater than 53 per cent stake in Maroc Telecom because of local rules that require it to make a mandatory offer for minority shareholders. Morocco's government, which has a 30 per cent holding, has to be on board with any transaction.
People with knowledge of the matter said last week that Etisalat was setting terms of $8bn of loans backing its bid. Etisalat is raising debt comprising a $4bn portion to be refinanced by bonds, and three and five-year loans, the people have said.
Aside from Etisalat and KT Corp, Qatar Telecom and France Telecom were among a number of potential bidders that expressed preliminary interest in Maroc last year. Etisalat this week reported a flat first-quarter profit after federal royalty as the telecoms company added more customers but suffered pressure on margins.
* With Bloomberg News and Zawya Dow Jones
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
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- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
More coverage from the Future Forum
The most expensive investment mistake you will ever make
When is the best time to start saving in a pension? The answer is simple – at the earliest possible moment. The first pound, euro, dollar or dirham you invest is the most valuable, as it has so much longer to grow in value. If you start in your twenties, it could be invested for 40 years or more, which means you have decades for compound interest to work its magic.
“You get growth upon growth upon growth, followed by more growth. The earlier you start the process, the more it will all roll up,” says Chris Davies, chartered financial planner at The Fry Group in Dubai.
This table shows how much you would have in your pension at age 65, depending on when you start and how much you pay in (it assumes your investments grow 7 per cent a year after charges and you have no other savings).
|
Age
|
$250 a month
|
$500 a month
|
$1,000 a month
|
|
25
|
$640,829
|
$1,281,657
|
$2,563,315
|
|
35
|
$303,219
|
$606,439
|
$1,212,877
|
|
45
|
$131,596
|
$263,191
|
$526,382
|
|
55
|
$44,351
|
$88,702
|
$177,403
|
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
