UAE-based telecom giant Etisalat Group will increase its ownership in Maroc Telecom Group by fully acquiring Etisalat Investment North Africa LLC (EINA) for $505 million from Abu Dhabi Fund for Development.

EINA holds investment in Société de Participation dans les Télécommunications (SPT), which holds a stake in Maroc Telecom Group. This acquisition will ultimately increase Etisalat Group’s effective ownership in Maroc Telecom Group from 48.4 percent to 53 percent.

Etisalat will fully acquire EINA by increasing its stake by up to 8.7 percent, a deal which will be funded by bank borrowings, the telecom said in a statement on Abu Dhabi Securities Exchange.

In 2014, Etisalat bought into Maroc Telecom through EINA in which Etisalat owned 91.3 percent and state-owned Abu Dhabi Fund for Development held the remainder.

The acquisition, which will be funded by bank borrowings, will increase Etisalat’s ownership in EINA to 100 percent, the telecoms provider said in statement on where its stocks trade.

The transaction, which will be closed upon certain conditions being fulfilled, will positively impact Etisalat Group’s consolidated net profits due to lower minority interest of group consolidated results and potentially higher future dividends from Maroc Telecom, the company said.

Maroc Telecom operates in 11 countries in Morocco and West Africa and offers telecom services, including mobile and fixed voice and broadband and mobile money.

(Writing by Brinda Darasha; editing by Seban Scaria)

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