Morocco Telecom is preparing to recalibrate its stock market strategy through the launch of a new share buyback programme, subject to shareholder approval at its Ordinary General Meeting scheduled for March 26.
The proposed resolution includes repealing the current buyback programme, originally approved in March 2025 and set to run until October 2026, and replacing it with an updated scheme designed to enhance share liquidity and formalise a liquidity agreement.
If approved, the new programme would allow the company to repurchase up to 1.5 million shares, representing approximately 0.17% of its share capital, with a maximum budget of around 255 million dirhams. The programme would run for 18 months, from mid-April 2026 to October 2027, giving management flexibility to intervene based on market conditions.
The operational framework sets a maximum purchase price of 170 dirhams per share and a minimum selling price of 78 dirhams, excluding transaction costs. The initiative will be financed entirely through the group’s available cash reserves, with no recourse to debt. In parallel, a liquidity agreement involving up to 300,000 shares will be established, with an independent provider mandated to manage structured market interventions aimed at reducing volatility and improving order book depth.
Analysts note that the programme is not designed to alter the company’s capital structure or significantly reduce the number of shares in circulation. Instead, its primary objective is to improve secondary market liquidity and provide greater operational stability for investors, particularly during periods of heightened volatility.
The decision to fund the programme through internal cash resources underscores Morocco Telecom’s financial flexibility, allowing it to pursue the buyback without compromising strategic investments, including 5G deployment, network expansion, and international growth initiatives.
In the context of emerging markets where liquidity and trading depth remain critical factors, the move may be viewed as a signal of proactive governance. By outlining a clear and structured intervention framework, Morocco Telecom aims to reinforce investor confidence while maintaining financial discipline.
Shareholders will determine the outcome at the end-of-March meeting. If approved, the new buyback programme will take effect from mid-April 2026 and run for 18 months.
