Flash Equity Report /
Morocco

Maroc Telecom: Inwi drops court case; reiterate Hold

    Tracy Kivunyu
    Tracy Kivunyu

    Equity Research Analyst, Telecoms

    Follow
    Tellimer Research
    21 February 2020
    Published byTellimer Research

    Press reports indicate that Inwi shared a statement yesterday evening withdrawing the MAD5.7bn lawsuit against the country’s market leader, Maroc Telecom, for noncompliance with regulatory provisions relating to fair competition. The company withdrew the lawsuit at the initiative of the royal family’s holding company, Al Mada, which owns a 69% stake in Inwi. 

    Inwi has expressed satisfaction with ANRT's decision to fine Maroc Telecom MAD3.3bn, saying that the decision will “restore fair competition in the telecommunications market benefiting consumers and companies as well as strict compliance to the laws and regulations in this field.”

    Our recently published target price excluded the impact of the Inwi court case and we thus maintain our Hold recommendation on Maroc Telecom.