Cleary Gottlieb represented BNP Paribas, Merrill Lynch and Attijari Finances as Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers in the initial public equity offering of Itissalat Al-Maghrib (Maroc Telecom). The transaction consisted of a secondary sale of 131 million shares (14.9% of the outstanding share capital) by the Kingdom of Morocco through a “best efforts” underwriting in a Reg S/Rule 144A offering. Unlike the more typical “firm commitment” underwriting, a “best efforts” underwriting does not obligate the underwriters to purchase the shares themselves if investors fall through. Shares will be listed on the Casablanca Stock Exchange and Euronext Paris; the transaction is expected to close today.
This sale is a further step in the privatization of Maroc Telecom, the incumbent telecommunications operator in Morocco. The Kingdom of Morocco had previously sold 51% of Maroc Telecom’s shares of Vivendi Universal, which has controlled the company since early 2000. The IPO is the first international equity offering and offshore listing of a Moroccan company, and, as a result, presented a number of specific challenges, including a significant reform of the Moroccan securities regulatory regime to bring local offering rules in line with international practices.