(MENAFN- Morocco World News) Casablanca – According to a press release published by the Moroccan Capital Market Authority (AMMC), the AMMC has approved a program to allow Maroc Telecom operator to buyback a maximum of MAD 286,500,000 in shares.
The operations will be carried out according to the following specifications: 1/ Maximum number of shares to be held: 1,500,000 shares, (corresponding to 0.17% of the capital stock); 2/ Maximum purchasing price: MAD 191 per share or equivalent share price in euro; 3/ Minimum selling price: MAD 92 per share or equivalent share price in euro.
This program will be submitted for authorization to the ordinary general meeting, which will be held on April 25, 2017. Once authorized, the program will last from May 9, 2017 to November 8, 2018 and will be financed by the company's cash. The cash available at the end of 2016 stood at MAD 974 million.
Historically, Maroc Telecom launched share buyback programs in May 2008, November 2009, March 2011, April 2012, April 2013, April 2014, April 2015 and April 2016.
Shares buyback programs are generally a sign that the company's board believes its shares are undervalued. Nonetheless, the official prospectus published by Maroc Telecom specifies that they decide to launch share buyback programs when either the volatility or the liquidity of the stock deviate from their historical levels.
Maroc Telecom is an integrated provider of both fixed-line and wireless services offering both voice and data. It is the Moroccan leading operator with operations in Morocco (which accounted for 60% of total revenue in 2016), and in Sub-Saharan Africa.
Maroc Telecom took over operations and consolidation in the Group's accounts from January 26, 2015 of six Etisalat's subsidiaries in francophone Sub-Saharan Africa in Benin, the Ivory Coast, Gabon, Niger, the Central African Republic, and Togo.
Prior to this acquisition, Maroc Telecom was already present in Burkina Faso, Gabon, Mali and Mauritania. Today, the main shareholders are Etisalat (53%) and the Kingdom of Morocco (30%). The free float is 17%. The company is listed on both the Casablanca Stock Exchange and Euronext Paris.
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