Vivendi in Talks to Sell African Telecom Stake

French conglomerate Vivendi entered exclusive talks to sell control of African phone operator Maroc Telecom to Emirates Telecommunications for €4.2 billion ($5.5 billion), the companies said, kicking off a potential series of deals that could reshape Vivendi as a smaller company focused on media businesses.

Selling Maroc Telecom would be a crucial milestone in Vivendi's broader effort to pay down a mountain of debt and get rid of its telecommunications assets through sales or spinoffs. The strategy would leave the Paris-based company as a much smaller entity focused on businesses such as Universal Music Group and pay-TV company Canal Plus. The cash deal under discussion with Emirates Telecommunications, also known as Etisalat, values Vivendi's 53% stake in Maroc Telecom at 92.6 Moroccan dirhams a share and Vivendi would receive a total of €4.2 billion in cash for the stake, including €310 million in dividends for 2012, Vivendi and Etisalat each said in statements. [Rabat, Morocco]