1. 05 May 2014
Contacts CFG Research Contacts Sales Team
Mehdi Ammouri
+212 522 488 363
m.ammouri@cfgmorocco.com
Mohammed Essakali
Bachir Tazi
Othman Benouhoud
Mourad Zidouh
+212 522 250 101
CFG Research 1
Reaction - News
The long-awaited acquisitions
Maroc Telecom– Hold – Target price: MAD 106.8
Maroc Telecom has announced the signing of agreement to buy 6 African assets (Benin, Ivory Cost, Togo, Niger, CAR and
Gabon) from Etisalat for MAD 5.3bn.
High potential Mobile assets which would reduce the group’s exposure to the
Moroccan market
According to our first estimates, these assets have generated during 2013 Revenues of
MAD 4.9bn and an EBITDAm of 22.3%. By way of comparison, MT’s sub-Saharan
subsidiaries, which are located in the same area, recorded for the same period revenues
of MAD 7.8bn and an EBITDAm of 50.4% which means, regarding the group’s expertise to
run operations in the region, that the new entities still hold significant potential in
terms of margins improvement. Moreover, excluding Gabon where MT is already in
place, the new assets represent a real strategic complimentarily with the existent
perimeter with a penetration rate of 65% (vs. 63% for Africa as a whole and 132% for
Morocco). After deal closing, the International segment should account for 44% of
consolidated revenues vs. 27% in 2013 and will fundamentally change the group’s
growth profile. Note that the realization of this agreement is subject to a number of
conditions precedents, among which the closing of the acquisition by Etisalat of Vivendi’s
stake in Maroc Telecom and regulatory approvals.
For the time being, we have little indication to comment the transaction’s price (Net
debt, the USD 650m split between equity and current account associative, valuation by
asset) although it appears unlikely that MT has paid more than x6.0 EV/EBITDA.
Valuation & Opinion
For the moment, we maintain our target price on the stock at MAD 106.8 and our Hold
recommendation pending necessary adjustments to take into account the impact of this
transaction.
RIC: IAM .CS BB: IAM M C
Keydata
Price (MAD) 101.0
Target price (MAD) 106.8
Potential 5.7%
Market capitalisation (MADm) 88,789
VWAP -1 year (MAD) 98
Highest -1 year 115
Lowest -1 year 87
1 year average daily volume (MADk) 11,968
2013 2014E 2015E
Sales (MDH) 28,559 29,281 30,461
EBITDA(MDH) 16,213 16,496 17,326
EBIT (MDH) 10,978 11,460 12,300
NIGS (MDH) 5,540 7,278 7,805
EV/EBITDA(x) 5.8 5.7 5.5
EV/EBIT (x) 8.6 8.3 7.7
P/E (x) 16.0 12.2 11.4
P/B (x) 5.8 5.1 5.0
Dividend Yied 5.6% 8.2% 8.8%
ROE 36.1% 42.0% 43.7%
Price performance chart
Share price performance 3m 6m 12m
Absolute performance 4.6% 3.1% -8.8%
Rel. to CFG25 -0.1% 0.4% -11.9%
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M aroc Telecom CFG 25

2. 05 May 2014 Maroc Telecom
CFG Research 2
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