Vivendi in talks to sell Maroc stake for Euro 4.2 bn

French media and telecoms conglomerate Vivendi SA said on Tuesday it had entered into exclusive talks to sell its majority stake in Maroc Telecom to Abu Dhabi-based Etisalat for Euro 4.2 billion ($5.54 billion) in cash.

Vivendi said it hoped to complete the talks by the end of the year and that talks with a consortium of Moroccan investors who could also invest in the company would be taking place in parallel.

The deal, when finalised, would be the first major divestment by Vivendi as part of its year-old strategy to reduce exposure to capital-intensive telecoms to focus more on its media business.

Vivendi is now widely expected to shift focus to finding ways to pull cash out of its Activision Blizzard US video games unit, which it previously tried, but failed, to sell.

The offer values Vivendi's 53 per cent controlling stake in Maroc Telecom at 92.6 Moroccan dirhams per share. It assigns an enterprise value to Vivendi's stake of Euro 4.5 billion, equivalent to 6.2 times its earnings before interest, taxes, depreciation and amortisation.