The historical telecommunications operator in Morocco is adjusting its presence in the stock market. According to the notice of convocation published for its upcoming Ordinary General Meeting, Morocco Telecom is preparing to launch a new share buyback program.
Morocco Telecom will hold an Ordinary General Meeting (AGM) on March 26. Among the items on the agenda are the repeal of the current share buyback program and the authorization given to the CEO to implement a share buyback program to enhance liquidity and establish a liquidity agreement. This operation, both technical and symbolic, reflects the group’s desire to strengthen the management of its stock while enhancing the liquidity of its shares in the domestic market.
The historical operator plans to repeal the current buyback program ahead of schedule, initially authorized at the AGM in March 2025 and set to run until October 2026, to replace it with an updated scheme. If approved by shareholders, this new program will cover up to 1.5 million shares, approximately 0.17% of the share capital, with a maximum budget of around 255 million dirhams. The proposed timeline would span 18 months, from mid-April 2026 to October 2027, providing the management with an extended window to intervene based on market conditions.
Objectives and mechanisms of the program
Operationally, the program is based on a price range: a maximum purchase price set at 170 DH per share and a minimum selling price at 78 DH, excluding transaction costs. Financing would be fully provided by the group’s available cash, excluding any debt. A liquidity agreement would also be established, linked to the program, with a maximum of 300,000 shares mobilized in this framework. This agreement, entrusting an independent provider with the task of buying and selling the stock in a structured manner, aims to reduce volatility, streamline the order book, and encourage better turnover of the stock. By doing so, the company signals to the market that it has the authorization and means to intervene even in the case of a strong appreciation of its stock, without being restricted by a too limiting ceiling.
Why this strategic choice?
From an analyst’s perspective, this buyback is not intended to alter the capital structure or reduce the number of shares in circulation, but rather to improve the liquidity of the stock in the secondary market and offer investors increased operational security. With sometimes limited volumes on the Morocco Telecom stock, this type of instrument is seen as a way to animate the market and support trading, especially in periods of heightened volatility.
The choice of financing through cash also indicates that the company has sufficient financial leeway to carry out these buybacks without jeopardizing its investment projects, particularly in strategic areas such as the deployment of 5G, network expansion, or international positioning.
A positive signal for the market?
In an environment where emerging markets are sensitive to liquidity and order book depth, Morocco Telecom’s approach can be seen as a signal of active governance to institutional and individual investors. By offering a clear and structured intervention framework, the group reassures on its ability to support the stock while maintaining financial discipline. It will now be up to shareholders, meeting at the end of March, to approve or reject this new program. If authorized, the scheme will come into effect from mid-April 2026, marking a new milestone in the stock management of one of the flagship stocks in the Casablanca market. The ball is now in the shareholders’ court, who will need to validate this resolution at the Ordinary General Meeting. If adopted, the new program will come into effect from mid-April 2026 for a year and a half.
