France Telecom buys Morocco’s Medi Telecom stake for $852 million
22 Sep 2010
Europe's third-largest telecom company France Telecom, operating under the key brand 'Orange' yesterday agreed to acquire a 40-per cent stake in Morocco's Medi Telecom for approximately €640 million ($852 million), in its drive for expansion outside Europe, as well as revenue growth.
The stake, which values the whole company at around €2.14 billion, will be bought from Moroccan financial institution CDG, and FinanceCom, a private holding company.
Through the acquisition of Morocco's second-largest telecom service provider, France Telecom will take on its domestic rival Vivendi, which owns a controlling 51-per cent stake in Morocco's largest mobile operator Maroc Telecom.
France Telecom said that it would consolidate the acquired stake into its accounts by way of global integration from the fiscal year 2015.
The French telecom giant, which operates in 20 countries in Africa and the Middle East, has set a target of doubling its revenues in emerging markets, particularly in Africa and the Middle East in the next five years, through selective acquisitions.
The company's CEO Stephane Richard said, ''The acquisition of this stake in Medi Telecom is the first concrete step in our new policy of expansion outside Europe, and contributes to our stated aim of doubling our revenues in Africa and the Middle-East over the next five years.''