Maroc Telecom Ahead of FT in Benin Telecom Bid

Morocco’s Maroc Telecom, controlled by French group Vivendi, is thought to be in a good position to bid for state-owned Benin Telecoms, according to African-bulletin.com, quoting French newspaper La Lettre Mediterrannee, following previous reports that France Telecom (FT) was in pole position for the privatisation of Benin’s incumbent telco.

The schedule for privatising the PSTN and broadband operator is unclear however, with observers saying that the issue could be clouded by upcoming presidential elections next spring, whilst Benin Telecoms’ workers’ union has warned that it will ‘react strongly’ to inevitable staff restructuring (‘downsizing’) plans resulting from a sale to the private sector.

Maroc Telecom has expanded across several African nations. In neighbouring Mauritania, it acquired 51% of Mauritel in 2001, and it acquired majority control of Burkina Faso’s Onatel in 2006 and Gabon Telecom the following year.

In 2009, Maroc Telecom signed an agreement with the Malian government to become the major stakeholder of Sotelma. The group is also eyeing other markets outside the traditional French speaking African countries which have strong political ties with Morocco.

Vivendi in Need for Expansion As Maroc Telecom Growth Stalls

For a few days last month Maroc Telecom's parent company Vivendi looked like it might pull off one of the most audacious attempts yet to arrest control of one of the Middle East & Africa's largest mobile operations from the now well-entrenched players.

However, Zain, whose Celtel unit was the subject of the interest, could not agree on price with the French company and the chance of a deal - however unlikely most commentators, including your author, thought that to be - now looks to be dead and gone.

If a transaction had gone ahead it would most likely have had a significant effect on Maroc Telecom's place in the Vivendi group, with the Moroccan incumbent slotting in as part of a much larger overall portfolio.

As it is, the company remains Vivendi's sole venture in the emerging markets, and its sole vehicle for growth in Africa. In addition to its home operation and its long-standing subsidiary in Mauritania, Maroc Telecom has expanded into Burkina Faso and Gabon by purchasing the incumbents in these markets, and this year has followed those deals with the agreement to purchase a majority stake in Sotelma, the incumbent telco in Mali. The talks with Zain indicate, however, that management in France is not entirely content with this slow piece-wise expansion strategy.

The mobile business, which accounts for almost two-thirds of Maroc Telecom's MAD14.6bn strong top line, grew by 25.9% in connection terms in the year to 30th June 2008, but by just 5.9% in the most recent 12 months. Strong performances by the regional operators (+26% in Gabon, +30% in Mauritania, +74% in Burkina Faso) have failed to offset an almost complete arrest of growth in Morocco which grew by just 0.5% in the year. With 14.29m customers, the Moroccan business still accounts for 81% of the overall mobile base of 17.55m, whilst its fixed operation contributes 84% of the 1.5m strong landline total.

In revenue terms, the home business is even more dominant with 86% of the mobile turnover and 85% of the fixed - and it is convincingly the most profitable in both departments. In this light it is perhaps no wonder that Maroc Telecom's acquisition in Mali - involving around 1m customers - has failed to satisfy the appetites of the French owners. The question, if Celtel is off the menu, is where they will turn next?

Maroc Telecom Wins Mali's Sotelma Bid

Maroc Telecom has agreed to acquire 51 percent of the Mali national operator Sotelma from the local government. The Mali government declared the Moroccan operator the provisional winner of the auction, reports news agency APA, citing a statement from Maroc Telecom.

Maroc Telecom reportedly offered EUR 252 million for the controlling stake in Sotelmea, beating offers from Sudatel and Portugal Telecom. The Mali government will maintain a 20 percent stake in Sotelma. 

Mali Still Talking to Maroc Telecom Over Sotelma Sale

The government of Mali is still in talks to sell a majority stake in national operator Sotelma to Maroc Telecom, reports local daily L'Essor. Maroc Telecom presented its bid for a 51 percent stake in January.

The Moroccan operator, already active in several African countries, offered EUR 252 million, beating bids of EUR 111 million from Sudatel and EUR 80 million from Portugal Telecom, according to the paper.

The government has given itself three months to negotiate with Maroc Telecom, a communications ministry official told the paper. Two weeks ago a delegation from the Moroccan operator visited the country to continue the negotiations.

The ministry official said the government is hoping for an improvement in Maroc Telecom's offer, while also looking to secure certain guarantees on personnel and management after the privatisation. The government has already negotiated a social plan at Sotelma for 610 voluntary redundancies, out of total staff of 1,382.