France’s Vivendi has granted Etisalat a period of exclusivity for the acquisition of its 53 per cent stake in Maroc Telecom until 25 September, Etisalat announced in a statement.

The Abu Dhabi-based operator is offering €4.3bn ($5.6bn) in total for the stake, based on a valuation of MD92.6 ($10.9) a share, which amounts to €3.9bn. On top of that it will pay the €300m dividend over 2012 to Vivendi.

Negotiations over the deal, which will be one of the largest in the Middle East this year if it goes ahead, started in April. Qatar’s Ooredoo (formerly known as Qatar Telecom) originally put in a rival bid for the stake, but withdrew it in June.

The latest development means that the parties are getting closer to a deal, but analysts also see it as a signal pressuring Etisalat to agree to certain terms.

The Moroccan government, which holds a 30 per cent stake in Maroc Telecom and needs to agree to the transaction in order for it to go through, recently announced it wants local partners to be involved in the acquisition.

Morocco’s state investment vehicle Caisse de Depot et de Gestion (CDG) has expressed interest in taking a stake in the company, though it is unclear whether that would be part of the Etisalat stake or shares currently in the hands of other shareholders. It is looking at buying around 5 per cent in the company, a source familiar with the matter says.

According to rumours in the market, Etisalat too has been trying to impose specific conditions to the deal, requesting measures that would limit the competition in the Moroccan telecoms sector.

Etisalat’s spokesperson, when contacted, preferred not to comment.

If the deal happens, Etisalat will also have to make a mandatory tender offer to the remaining shareholders in Maroc Telecom. The Moroccan operator’s free float represent approximately 17 per cent of the total number of shares.

A syndicate of banks has agreed to help Etisalat fund the transaction. The plan to borrow funds for the acquisition was approved by the company’s shareholders in May.

Etisalat’s revenues reached AED9.88bn over the second quarter of 2013, a quarter-on-quarter increase of 3 per cent and an increase of 20 per cent compared to the same period last year.

Over the past few years its profits dwindled following increased competition in regional markets and unsuccessful operations of its Indian joint venture Etisalat DB, which caused the company over $1bn in profit loss. It shut its Indian operations last year after the Indian government decided to cancel 122 2G licenses.