In Morocco, the government announced its intention to reduce its participation in incumbent operator Maroc Telecom. It will sell stakes equivalent to 8% of the operator’s total shares.

The capital of this CSE-listed operator is owned by Etisalat (53%), the government (30%). On the Casablanca Stock Exchange, there is a tradable capital of 16.9%.

Part of the 8% to be sold should be transferred via IPO (on the local exchange probably) and the remaining via block trades.

Analysts are already foreseeing two scenarios according to which Etisalat would move to increase its capital in the operator. What is now left to know is the transfer price. In the last twelve months before May 31, 2019, Maroc Telecom’s share had lost 12% on the exchange. This does not necessarily mean that this is the reason the government is selling.

According to data gathered by Ecofin Agency, since December 16, 2004, the market capitalisation of this firm has risen by 69%. This represents MAD3.8 billion of unrealized profit. Coupled with that rise, there was a cumulated dividend of MAD122.8 per share during the above-mentioned period. For the 8% share to be sold, this amounts to MAD8.6 billion dividends collected.

Idriss Linge