United Arab Emirates (UAE)-based mobile operator Etisalat received a US$500 million grant from the emirate of Abu Dhabi towards its US$5.7 billion acquisition of Morocco’s Maroc Telecom, according to a report.
HumanIPO reported this month Etisalat had purchased a 53 per cent majority shareholding from French telecom Vivendi.
According to Reuters, the grant provides further evidence for the emirate’s support of local companies but could draw fire from other companies in the UAE for subsidising state-owned entities and stifling competition.
“In connection with the acquisition, the group received an amount of US$500 million as a grant from an entity owned by the government of Abu Dhabi,” the company’s prospectus for a planned bond issue reads.
The acquisition was made by Etisalat International North Africa (EINA), in which Etisalat has a 91 per cent stake.
Etisalat announced last year it was expecting to buy the controlling stake, later announcing the deal would go through by the end of May before applying for a US$4 billion loan facility to fund the buyout.
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